How can leasing a more prestigious car be cheaper than leasing a standard car?

How can leasing a more prestigious car be cheaper than leasing a standard car?

With leasing you are not buying the car but rather paying a fee to use it for a period. The fee that you pay is actually the amount that the car depreciates while you use it, plus interest.  Therefore, the estimated residual value of the car at the end of your lease period is an important factor in determining your monthly payments.  A more prestigious car doesn’t usually depreciate as fast as a standard vehicle (i.e. its residual value doesn't drop as fast), so the monthly payment for a car lease of a relatively prestigious vehicle can end up being lower than that for a standard car. For example, a BMW 1 Series might cost around £290/month to lease while a Ford Focus Zetec costs £305/month.

 

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