Quote:
Originally Posted by freezey
Just curious why some people tend to lease BMW's and other exotic cars from second hand lease shops. I see a lot of the "exotic car leasing" shops in NY/NJ/CT. I am not really sure if there is a benefit and or why people use these places. Any insight would be nice.
There was a recent one in NJ that scammed a whole bunch of people and a buddy of mine out of a Bentley. He currently has a 250k paper weight sitting in his garage.
|
Payment Payment Payment. This is why almost all individual consumers who choose a 3rd party open-end lease do so. It's also how the majority of them end up screwed in every hole. The entire financial risk is on the consumer and there is no clean "walk-away" guaranteed at the end of rental period. There are very few scenarios where this structure makes sense for an individual leasee given the risk involved. It varies by situation and state as to when and why this type of contract makes sense, but generally corporate leases are the most suited if the tax structure and burden allow.
A 3rd Party Negotiator (Broker) is totally different and most common in metropolitan markets with stacked franchises. The contractural parties do not divert any differently than if the consumer was negotiating the deal themselves.
Quote:
Originally Posted by skioutwest
I am not certain, but I believe these lease companies are registered as fleet dealers. They get better pricing from the manufacturer, then add a spread. Everyone wins, including the dealer because it is included in their volume incentives.
|
This is actually NOT how 3rd Party Lease Companies work with BMW and most other companies. BMW does have 2 types of Fleet Programs, but is far different from 3rd Party Leasing which is not allowed under either program. Dealers may have their own "Fleet Sales" rep or department, but these are driven by different mechanisms than distributor/mfr direct fleet programs.