These days car buyers are overwhelmed not only by the multitude of cars and configurations available, but also by the number of payment choices. Leasing is becoming an ever more attractive option, but it can be confusing for first time lessees. (For more on leasing, see The Beginner’s Guide to Leasing)
This post examines which brands Cartelligent clients tend to purchase and which they prefer to lease and looks into the underlying considerations buyers use to make their decision.
Brands with high leasing percentages
Leasing is most attractive for clients who only plan to keep the vehicle for a short period of time. There are a number of reasons why this makes sense—many car buyers value the latest safety and tech features in their vehicles, enjoy the prestige of driving a newer car or just enjoy the fun or driving something new every few years. Additionally many business owners will choose to lease company vehicles for the tax advantages and larger companies will often give car allowances to top executives.
5. Audi (64% Leased)
Why leasing is popular: Luxury performance vehicles such as Audi’s are often popular choices to lease. Audi enthusiasts love the blend of style and technology the brand offers and upgrade regularly to keep up with the latest trends. Audi offers an aggressive money factor (the leasing equivelent of the interest rate) to well-qualified lessees on many models which helps to keep payments low.
4. Mercedes-Benz (67% Leased)
Why leasing is popular: Like Audi, Mercedes-Benz makes it attractive to own the latest model. New releases offer technology and safety features that make drivers want to update their vehicle. Mercedes-Benz also offers a high residual value on many models to lower the monthly payments on its leases.
3. Land Rover (68% Leased)
Why leasing is popular: Land Rover has successfully positioned its brand as a status symbol (even the Queen is driven in one!). Drivers are more likely to want the convenience of leasing so they can easily upgrade to the latest model.
2. BMW (70% Leased)
Why leasing is popular: BMW incentivizes brand-enthusiasts to upgrade often with its innovations in safety and technology, as well as style. The brand also offers attractive lease-only incentives such as loyalty and lease rebates to make leasing espcially attractive to well-qualified drivers. BMW owners tend to come back and lease another BMW. (see Top ten brands for customer loyalty)
1. FIAT (78% Leased)
Why leasing is popular: FIAT is a fun, sporty car for single professionals, but not necessarily one that will work once marriage and children are on the horizon. This combined with an aggressive lease rate make FIAT our most leased brand.
Brands with high purchasing percentages
Buying, on the other hand, makes sense when drivers plan to hold onto the vehicle for a number of years. Buyers tend to value reliability and economy over the latest style and gadgets. This is reflected in our list of most-purchased brands:
5. Chevrolet (63% Purchased)
Why buying is popular: Our top-selling Chevy, the Volt, is primarily leased, but other popular models such as the Suburban and Tahoe are purchased by clients who intend to hold onto them for the long run.
4. Honda (65% Purchased)
Why buying is popular: Hondas are affordable, reliable cars that tend to be driven for a number of years. Honda vehicles hold onto their value consistently, which in combination with low interest rates for well-qualified buyers, make them an attractive purchase option.
3. Toyota (68% Purchased)
Why buying is popular: Toyotas consistently top the charts for best resale value. It’s unsurprising that their reputation for reliability and safety makes car buyers want to drive them for a number of years, especially with Toyota’s aggressive finance rates for well-qualified buyers.
2. Hyundai (73% Purchased)
Why buying is popular: Hyundai’s come standard with a 10-year/100,000 mile Powertain Limited Warranty and five years of unlimited roadside assistance. Hyundai buyers top our list of financed vehicles (as opposed to those who pay in full up front for their new car).
1. Subaru (75% Purchased)
Why buying is popular: Subaru is another brand renowned for safety and reliability. Eco-conscious Subaru buyers are also shy of financing—the brand tops our list of vehicles customers pay for in full.
Whether you’re thinking of buying or leasing your next new car, Cartelligent can help you get a great deal on exactly what you want. Call our team of car-buying experts at 888-427-4270 or get started today.