IS-SV

Short answer, yes depreciation is a major factor in owner expense and yes future depreciation can be estimated with some degree of accuracy, leasing/finance arms historically have done it quite well for the a majority of the years in the last decade. Of course terrible economic conditions and gas price spikes will cause problems in certain segments like SUV's, and losses for the companies that are heavily invested in one loser segment paid the price (like GM with all it's lame truck-based SUVs that consumers chose to turn in and not buy at the end of the lease, GM taking the bath). But the point is (as you showed with Honda being an excellent example), certain brands of cars have historically and with some consistency enjoyed lower rates of depreciation than others. Or another way to say it, is depreciation rates by brand can be estimated with some validity for comparison purposes by brand.

IS-SV

I agree, that's the reality for a large segment of premium car business in the US.

Secondly, for certain self-employed professionals leasing makes it more convenient to take advantage of tax write-offs associated with their business transportation.

CDNROCKIES

+2

I was just going to post the same thing. Leasing makes sense to many people.

Back on the thread topic, I'd pick a IS350 over the 328 any day, all day. I'd still take it over the 335 sedan...but if a coupe was a consideration the Bimmer would win.

Phiber

+1.. leasing will actually cost way more than buying a car in the long run..because you will always have to lease a new car every few years..

IS-SV

Note: Many affluent people buy or lease new cars every few years. They know it's expensive and they can afford it. They don't want to drive a Camry for 10 years even though they know it would be much cheaper in the long run on a cost per mile basis.

darkdream

Unless they keep the old car and still buy a new car every few years =P

IS-SV

Cool you have a 335 and IS350, certainly makes for the best of back-to-back comparisons. I have a C300 and IS350 so I frequently make in-depth comparisons that can only be done via long term ownership.

What are some of the reliability-related issues that you've seen with the 335?

amdave

Actually, nothing I said is untrue.

If you read what I wrote closely, I stated that financially savvy people will not lease - why? Because it is far more expensive than buying a car and driving it for 10 yrs or more.

If someone who is rich wants to waste money b/c they like driving a new car every 3 yrs - fine by me - but you can't argue that it is a financially smart move. The only exception may be the self-employed, but that is likely a small percent of the population.

Leasing was pioneered by companies like BMW to make their cars more affordable to people so they make more money - simple as that. It has worked well for them, but is not a smart way to go about having a car unless you have money burning a hole in your pocket.

IS-SV

Note: I don't see any posts above with somebody stating or arguing that leasing was "a financially smart move".

amdave

I was responding to someone saying my post was untrue, when clearly my point is valid.

Again, I don't begrudge anyone for wasting money - our entire economy is based on wasteful unnecessary spending, and I for one would not like to see our economy collapse.

IS-SV

I see, but the topic was something about the 328 vs. IS350 I think.

Phiber

Actually leasing can be sometimes better than buying a car. Because you can negotiate a price and then test out the car for 3 years and if you like it you can negotiate more into a buy out.

IS-SV

Certainly some valid examples, many people negotiate a better buyout price for Mercedes vehicles than the payoff on the contract.

Or another case is with crappy full size GM SUV's. When their resale values dropped like a rock when gas prices spiked, owners gladly turned them in at the end of the lease, leaving GM with the huge writeoffs for the nearly worthless trucks.

IS-SV

Maybe the person the OP was helping got their new car, that would be nice. Let's see if they have pics.

amdave

I didn't mean to hijack this thread - but almost anyone who thinks leasing is better than buying is not making a smart financial decision.

My point regarding the cars was most about BMW vs. Lexus in general. BMW derives a large number of sales through leasing, and thus has very little use for making cars that last 10 plus yrs. They also know that the people who are leasing these cars are into the marquee or are not financially savvy enough to care- so they cleverly create 3 ys leases and cover service for 4 yrs - creating a nice tempting package for people to jump into the money losing leasing cycles with them.

I think it is brilliant marketing - but fundamentally that is all it is, marketing and personally turns me off to a car company.

Lexus, otoh, does things right - makes a high quality car, which will last as long as you want to drive it, will give you very little trouble, and couples all of that with excellent customer service after the sale.

So regarding the OP - get the Lexus!