Car Price Creep - Leasing

[jptruck]

Just venting here, but is it me or are car prices getting a little ridiculous. Case in point, my wife's X5 lease is up. This is the 3rd X5 we've had, and probably 7th or 8th I've purchased or leased from this one dealership in the last 10 years (I do it for other family members, too).

I usually do bare minimum down and the monthly lease has gone from $650 on my 2009 to $750 on the 2012, and now they want close to $900 for the current model with less stuff. Granted they've made some minor changes to this vehicle, but it's ESSENTIALLY THE SAME. The price has jumped from the mid-$40s to almost $70K in 6 years.

This is a US-assembled vehicle. Can't really blame the dollar for that one. I can easily lease another LR4 for less, and it's a WAY nicer vehicle. Hell, a Volvo XC90 is like $44,000.

Nuts. I'm getting off the BMW bandwagon. Mercedes, Volvo, Audi, LR, here I come. Just waiting on Elon Musk to put out that All-Electric SUV

 

[horatio8]

The prices of the cars have certainly increased and, in addition, the leases have gotten more expensive. The car makers are not subsidizing the leases as much by setting artificially high residual values.

 

[manoftaste]

I was just thinking about this a few weeks ago. I know you are comparing just the last few years, I was thinking about like twenty years ago or so, when a corolla or nissan sentra would begin around 8k or 9k and top out at 12k or so. An Accord would be around 15k (I remember watching tv ads for $140/month for Accord), A luxury brand like Acura Legend was around 30k, a well optioned/appointed Luxury SUV (like Montero SR) was like 35k to 40k. FFRR was about 65k in the year 2000, not sure what it cost back in '93 or '94, it wasn't on my radar at the time, maybe because I was only a punk attending college at the time But I was always interested in cars (reading/buying car magazines and stuff and Kelley's Blue Book, actual "book" as internet didn't exist back then) that's how I remember a little about the costs.

At the time, It was unheard of to shell out 50k, 60k or 65k for a luxury SUV like Discovery LR3/4 (save FFRR as it was an oddity at the time in terms of cost). I would have never thought that I'd pay $65k for my SUV. I know as we grew up our economic circumstances changed but what I am saying is that today $65k is like yesterday's 30k, and I don't think I got super rich that I can now very easily afford top of the line SUV (which is now upwards of $100k).

I have always purchased/owned my cars so not sure about the leasing costs but I am sure they were pretty damn low back then and have kept up with MSRPs over the years.

 

[samcarloso]

Funny, I just received a letter from my local BMW dealer wanting to buy my lr4 for $500.00 more than current market value. I was considering but there is not one thing I can force my self to like more than my lr4. I guess they are having a hard time competing with other luxury brand vehicles currently in the game.

 

[aj22]

I have to disagree a bit. In 2000, I bought an E320 wagon for about 51k, MSRP was 58.5k, and it's very close to the same to day.
In '98, I bought a Passat wagon for something like 21k, though I don't remember exactly. I don't think a new one is all that much more.

I do agree that carmakers have realized that premium SUVs could command a much higher price. I always thought they were under-priced to be honest. In 2001, I purchased a Land Cruiser for 50k - a bargain I thought, considering a Sienna at the time(which I went to the dealer with the intention of buying) was mid-30s. Those, as we all know, have increased in price dramatically. I'm a bit surprised it took so long for car makers to realize that there is a market for high-end SUVs.
Considering I didn't pay all that much more for my MY14 LR4 than I did for my LC, I actually think it's a bargain, despite the high price.

Just my $.02. (More like my $55k, but you know what I mean :^) )

 

[Quijote]

In 2006 a 911S was ~82k to start. Now it's 100k. My 2003 330i ZHP (a 3er with the large engine) was 42k MSRP and I paid 36k. In 2011, my similar, but not quite as awesome 328iT M-Sport had an MSRP of nearly 50k - and that's with the small engine. Had it been a 335i (if offered), it would have been another 4k or so.

I think premium European cars have gone up a lot in the last 6 years.

 

[jptruck]

It's mostly BMW. I remember looking at a Discovery in 2000 or so. Pricetag was just over $40,000. I just paid over $50,000 in 2012 for an LR4. That's reasonable compared to inflation and quality of the vehicle.

BMWs issue is they added the X3 line and then jumped the X5 by close to $20,000 in 5-6 years. They swear up and down that it's a nicer vehicle, but I really wish that I kept my 2008 X5. It's drives nicer than the current one and had more features for a vehicle that cost A LOT more.

I guess my grip is this: If I find a product I like, I don't mind paying a bit more each time for inflation, but don't try to convince me you reinvented the wheel and now it costs MUCH more.