Why do salespeople pushing leasing?

[Anonymous]

We’re planning to buy a car within the next month or two, and while test driving, almost every salesperson asked if we would be leasing and then went on to describe why it’s better. We buy/finance because we like to keep our cars longer and I’m worried about banging up a leased car. Is there a reason they push this, though? He seemed annoyed we were financing. I assumed it’s because they make more money or get a bonus from a leased car sale. I asked one salesperson. what percent of people lease v buy there and he said 70% lease! (I’m in CA).

[Anonymous]

Leasing is more profitable for the dealership.

[Anonymous]

Anonymous wrote:Leasing is more profitable for the dealership.

This. Plus they get to sell another car in three years. When you lease, the bank buys the car.

[Anonymous]

Keeps a fresh supply of low mileage lightly-used cars on the market, too. The margins are higher on used cars than new ones.

[Anonymous]

We call leasing "FLEESING"! A big rip off.

[Anonymous]

Anonymous wrote:I asked one salesperson. what percent of people lease v buy there and he said 70% lease! (I’m in CA).

That's a high lease rate. Is it a Mercedes or similar luxury brand? They are often leased to the owner's company, that's why.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I asked one salesperson. what percent of people lease v buy there and he said 70% lease! (I’m in CA).

That's a high lease rate. Is it a Mercedes or similar luxury brand? They are often leased to the owner's company, that's why.

Nope. Most leased cars aren’t by sole proprietors.

Most cars are leased because it’s a cheaper monthly payment. In the long term it’s a bad deal financially. It means you have a car payment for life which the auto companies love.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I asked one salesperson. what percent of people lease v buy there and he said 70% lease! (I’m in CA).

That's a high lease rate. Is it a Mercedes or similar luxury brand? They are often leased to the owner's company, that's why.

Nope. Most leased cars aren’t by sole proprietors.

Most cars are leased because it’s a cheaper monthly payment. In the long term it’s a bad deal financially. It means you have a car payment for life which the auto companies love.

I agree that most people lease cars because the monthly payment is lower. It allows them to buy cars they couldn't otherwise afford. Just be clear to the salesperson that you are not interested in leasing.

[Anonymous]

Lease rates:
https://www.cartelligent.com/blog/which-car-brands-do-people-lease-or-buy

[Anonymous]

Anonymous wrote:Lease rates:
https://www.cartelligent.com/blog/which-car-brands-do-people-lease-or-buy

OP here. Thanks for posting that link. So interesting! The dealership was Acura.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I asked one salesperson. what percent of people lease v buy there and he said 70% lease! (I’m in CA).

That's a high lease rate. Is it a Mercedes or similar luxury brand? They are often leased to the owner's company, that's why.

Nope. Most leased cars aren’t by sole proprietors.

Most cars are leased because it’s a cheaper monthly payment. In the long term it’s a bad deal financially. It means you have a car payment for life which the auto companies love.

And I get a new car every three years, and if it’s underwater, then it’s not my problem.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I asked one salesperson. what percent of people lease v buy there and he said 70% lease! (I’m in CA).

That's a high lease rate. Is it a Mercedes or similar luxury brand? They are often leased to the owner's company, that's why.

Nope. Most leased cars aren’t by sole proprietors.

Most cars are leased because it’s a cheaper monthly payment. In the long term it’s a bad deal financially. It means you have a car payment for life which the auto companies love.

And I get a new car every three years, and if it’s underwater, then it’s not my problem.

Do you worry about damaging your car or wear & tear? That’s what would concern me most. I’d be so anxious. I see no issue otherwise. It would be nice to have a new car every three years, although not exactly environmentally sustainable...

[Anonymous]

You're renting a car and on the hook for any damage. Then you return a car that they can sell to someone else.

Salesmen love transaction volume - more opportunities for them to take a cut of the deal.

They hate people like me who buy a car outright for cash and then keep it for 10-15 years.

[Anonymous]

Anonymous wrote:Lease rates:
https://www.cartelligent.com/blog/which-car-brands-do-people-lease-or-buy

Wow that is really interest data.

The tax code completely props up the luxury market - Audi, Mercedes, BMW. People lease because they can deduct the payments against the income of their business. If the US government eliminated the deductions for car lease payments - or capped the amount of the deduction - I think you'd see a radically different car market in this country.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Lease rates:
https://www.cartelligent.com/blog/which-car-brands-do-people-lease-or-buy

Wow that is really interest data.

The tax code completely props up the luxury market - Audi, Mercedes, BMW. People lease because they can deduct the payments against the income of their business. If the US government eliminated the deductions for car lease payments - or capped the amount of the deduction - I think you'd see a radically different car market in this country.

I'm never going to make DCUM money and it grinds my gears to see adds promoting Range Rovers and BMWs to our small business bragging about this tax break. At least I know that it's not just the company paying for the boss's car - it's the US taxpayers, too.
Somehow, this slipped through the administration's revision of the tax code.