And the debate between lease vs. finance lives on.

I bet dealerships are willing to unload M5s and 5-series now through next year--I believe a new 5-series is scheduled for around 2010.

So, as I do not understand US leasing laws, why is it that you can not lease a used car? I do know that you can assume a lease, but that is a roundabout way of leasing a used car. We also have vehicle financing with guaranteed buybacks from the bank or financing company, but maybe those aren't common in the US. Those aren't leases, because the title transfers to the driver during the ownership term, but it mimics a lease. Apart from those alternatives, are there no unaffiliated leasing companies that lease used cars, and retain the title, charging you for the depreciation and carrying cost, just like new cars leased through the finance arms of the automakers?

You can lease a used car in the US. There are some financial institutions that will let you do a "balloon payment". I have a buddy that last year did a balloon on an '05 Land Rover.

It's not that you "CAN'T" lease a used car.. It just doesn't make sense financially. The deals are generally VERY bad.