As a dealer, perhaps you can tell us something, on average does a dealership make a bigger profit on a customer who leases, or one who purchases a car with a loan?
I remember once some years ago I was trying to buy an Audi, and the salesman was pushing leasing pretty hard. In his pitch he asked if I had a business of some sort, as if I did I could write off the lease payments. This was over 15 years ago, I don’t know if tax laws are different now, but if that is the case, that might explain why high end car buyers often lease, many are lawyers, business owners, sales reps etc who use their cars for business and can write off the leasing, not because they are smarter or have higher credit ratings than the average guy.
If your car is used for business, why would how you pay for it matter regards using it for a write off?
Regards making more or less money on a car..... the majority of new car sales i have been involved with here in Michigan are either employee pricing or supplier/ family member pricing.
In all those cases the lease and buy price use the same figure to work from.
Typically, these days, buyers shop a lease payment on a given car at several dealerships, if they dont have Employee/ supplier/ family discount.
In most cases, one or more dealers pull their pants down and [censored] the car. The salesman makes what is called a “flat” on such deals. Typically a flat at many stores is 100-150 bucks on the sale. Obviously, even a guy selling 20 cars a month, 2 or 3 grand making flats isnt gonna pay the bills working 50-70 hours a week in a store.
Mixing in a few used car deals helps the wallet. Sometimes the manufacturer offers bonus money on certain models. Salesman might get a “ spiff” on extended warranties, etc the finance guys sells on his deals. Little here, little there.
BTW... we own all our cars, and cars i drive for business( out of state auctions, etc) we get tax advantages from for putting miles on them
