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The End of Leasing? And do you care?

95 messages,  Last post on Sep 03, 2008 at 4:58 PM

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#17 of 95 Re: Never Made Sense to Me [oldfarmer50] by bvdj84 Jul 26, 2008 (11:45 am)
Replying to: oldfarmer50 (Jul 26, 2008 11:30 am) Well, it is up to each individual company, and why would they want to pull the plug in this day in age, when that is what makes up a huge portion of its market and they would lose so much business. Company's would have to re-evaluate their cars pricing, and that would effect them, along with the consumer. You think many would be able to afford a bottom end Accord? Nope, let alone a fully loaded Accord or Camry, or that new Malibu. Its tough enough that some cars that I test drove this past spring, are still there sitting on the lot, and it now officially has a tag on it saying its been to its first oil change. I almost got that car, when the "lease" was good. Now its not good at all, and that car is $29k. So could you imagine if that car was a finance only model? It might be sitting there a long time, or they may lower the price, but they will take a hit, and that won't happen too long before that will change, either way people have to make a profit. Literally that $29k car was going to be lease for $340 a month, with $0 down!! unheard of! That lease offer is gone! I didn't like the car enough though.   That doesn't make sense. Its like the company is digging their own grave. Throwing away a big part of their market.   It makes sense to lease for me, but getting rid of that option will certainly kill the market substantially.
#18 of 95 Re: Leasing and the value consumer [ponytrekker] by Mr_Shiftright HOST Jul 26, 2008 (11:56 am)
Replying to: ponytrekker (Jul 26, 2008 10:13 am) I'd bet that the vast majority of leasors are not doing a tax write-off, and I'd also bet that a percentage who used to do tax write off now aren't making the same money to justify it (you have have enough income to "write-off", in other words). And some maybe don't have a job anymore.   So really Chrysler might be ditching a failing market segment, not a prosperous one.   Of course, I agree, they don't have much choice these days when it comes to trimming the fat...and once the company's fat is all trimmed, if they are still losing money, they'll have to start trimming the muscle.   Some leasors might also end up like my brother--he doesn't even MEET his mileage and he doesn't write anything off. He's retired.
#19 of 95 Leasing by wesleyg Jul 26, 2008 (1:04 pm)
I replied several months ago to a question regarding leasing to I believe Oldfarmer in which some posters roasted me (tore me a new A**) for my leasing efforts. I have leased approx. 38 new cars since 1966. I never recommend to any of friends that they lease since every situation is unique.   But just to briefly sum up my situation, I lease for 48 months, sell it outright after 18 or 19 months, keep it clean and low mileage, no money down, try to lease a popular car that I LIKE, always shoot for a manufacturers incentive program on the car etc. I never shop for payments as I can afford to buy but much to my wife's ire, I cannot keep any car past 18 months or 18K.   For most of my efforts, after selling the car and figuring my "cost to drive" and often getting slightly more than the buyout price, not having to pay the 7.5% sales tax on each car that runs through my hands, it at least eases the pain. I know that for most people, my system wouldn't be appropriate at all, and please, I am NOT recommending this system.   So if leasing becomes too restrictive, a guy like me is gonna be unhappy.
#20 of 95 Re: Never Made Sense to Me [oldfarmer50] by 1stpik Jul 26, 2008 (5:54 pm)
Replying to: oldfarmer50 (Jul 26, 2008 11:30 am) "...I could never tell if I was getting hosed."   The suspicion that you're getting hosed means that you ARE getting hosed. Replies to this message: hipreck (Jul 26, 2008 7:34 pm)
#21 of 95 Re: Never Made Sense to Me [1stpik] by hipreck Jul 26, 2008 (7:34 pm)
Replying to: 1stpik (Jul 26, 2008 5:54 pm) I don't see leasing ending for most cars. BMW will continue to lease their 3 series at a profit. They will continue to retain their residuals since their gas mileage is pretty good for a sportier car.   The trouble in leasing is in Trucks and SUVs. Automakers are in trouble because they need to write down book values due to the gas prices and SUV residuals falling off a cliff.   On the other side, companies leasing the Toyota Prius are making a ton of money since they are selling for more than their residuals.   Chryslers mistake was writing leases on a brand that has depreciation issues. Since they are so truck/SUV dependent, they are getting killed.   Those who have leases on SUVs are making out like bandits if they decide to purchase them. Leasing companies are offering large discounts on residuals to get leasers to purchase their trucks/SUVs at end of lease.
#22 of 95 Re: The End of Leasing? And do you care? [Mr_Shiftright] by mattandi Jul 26, 2008 (9:15 pm)
Replying to: Mr_Shiftright (Jul 25, 2008 4:49 pm) Chrysler is just trying to stop the bleeding. I'm sure they're taking a beating on residuals on leased Durangos and Commanders. They decided it is better to let someone else take those risks and hits. I also don't think this is the death knell for leasing, though some others may follow suit. If you really want to lease a 300C, someone will underwrite it, just not Chrysler.
#23 of 95 Re: The End of Leasing? And do you care? [Mr_Shiftright] by trimaster Jul 26, 2008 (9:45 pm)
Replying to: Mr_Shiftright (Jul 25, 2008 4:49 pm) If people want to lease a car, they'll just take their business elsewhere. Many high end luxury vehicles are leased and I don't see that changing anytime soon.   If anything, Chrysler sales will drop as a result of this.
#24 of 95 Plenty of Leasing Companies Without the Manufacturers by simpilot1 Jul 26, 2008 (11:40 pm)
There are hundreds if not thousands of companies and banks who will lease you a vehicle without any manufacturer support so I don't think it will change anything. I'm fairly sure that most current leases are arranged by the dealer though these independent companies or by the purchaser anyway . Here's just one. http://www.leasecompare.com/
#25 of 95 Leasing is a Scam by 1stpik Jul 27, 2008 (3:27 am)
One of the funniest justifications for leases is the perpetual claim that "leasing is for people who like to drive a new car every 2-3 years." Like you can't do that if you buy a car.   I guess we should all lease our houses, too. Those darn 30 year mortgages just keep people stuck in homes they'd much rather trade in for new ones.   Another amusing part of the scam is the "tax savings" lie. People "save" hundreds of dollars per year in taxes by spending thousands of dollars to rent a car. Sheer genius.   Then there's the idea that leasing allows people to drive nicer cars than they could afford to buy. So what? You can rent anything in this country from a luxury apartment on Park Avenue, to a Lamborghini, to a yacht. That doesn't make them yours.   And with cars, it doesn't fool anyone. Everybody knows about leasing cars. The secret's already out. When people see a guy pull up in a $60,000 car, they don't think, "Gee, that guy must be rich." They think, "Gee, another sucker thinks he's fooling us by leasing a car that he can't really afford."   And unless you're driving a Bentley or a Maybach, why bother? Everything else is just another mass-marketed box-on-wheels that purports to convey an image of "success" or "youth" or whatever to a bunch of strangers. It's pointless.   The only person you'll ever really impress by leasing a car is a car dealer. He'll be your friend for life. That's good, because you'll need a friend like him every few years, when the lease ends and you're stuck with no car and no equity for all the money you spent.   Call leasing what it is: renting. You're renting a car, renting an image, renting the illusion that you're moving up in life, while you're really stuck in a downward spiral on the highway to hell. Replies to this message: bvdj84 (Jul 27, 2008 5:57 am)
#26 of 95 Re: Leasing is a Scam [1stpik] by bvdj84 Jul 27, 2008 (5:57 am)
Replying to: 1stpik (Jul 27, 2008 3:27 am) Although, I do lease my cars, but I truly appreciate your statement! That is most of the time true for most people!      I work for a company that offers financial assistance at a health club to obtain services/membership. I got the scholarship paper work from a young woman of about perhaps 23yrs old or so.. But she pulled up in a Brand Spankin new 2008  Volkswagon Jetta Wolfsburg Edition, RED, MSRP $23,000! The crazy part was, that we were commented back and forth about her car, while she hands me the papers in which factors her approval for assistance. Her income was was quite low a month, and her insurance and payment totaled to nearly $450. Now tell me, does she really need to have the new car!? I am sure someone is helping her out, but was that the greatest move for her? I was like WOW! Just goes to show you, that person driving that brand new Escallade, is borderline bankrupt, how can anyone live like that? But, reality is, most people are, and truly cannot afford to front that image. The escallade is certainly about image.But some do have the money, thats fine, but realize how much more money you would have sitting their if it was not tied up in a lost asset.    The auto industry is blood thirst industry, and even more so now, you have to watch your back, all they want is your signature, and get you out, then your stuck, well for atleast 3 or so years. You better want that car. I still think that they put way to many rules on the lease, I think they should atleast give you the option to get out of the lease at a certain point in the lease, atleast if you are going to stay with the same company. But, then you could always sell it after a time period. Problem is, some cars depreciate too much. Just like Chrysler, and my opinion is, they have never really offered a quality product. I seriously think they have gone down hill, big time, other than there vans, and truck, they have really sunk low. You don't see too many of them on the road. The whole line up looks cheap, thrown together. Seriously look how fast they drop in value. Sit inside a Chrysler sedan, then sit in a camry, Accord, Jetta, even nissan, your see my points.   I love your statement though, much truth to it.

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