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Automotive News & Views The End of Leasing? And do you care?
95 messages, Last post on Sep 03, 2008 at 4:58 PM
You are in the Automotive News & Views Forum. Your Hosts are steve_ & claires
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Replying to: ponytrekker (Jul 30, 2008 12:28 pm) That does sound like a lot of money for a 2005 vehicle. How many miles do you have on it? I think the most I ever spent on my 2000 Intrepid in a single year was $2,000. And that was just last year...2007. The car started that year with about 128,000 miles on it. I'm into it about $940 so far this year, but the a/c is dying so I have the choice to either throw more money at it or tough it out. And I'm finding that the older I get, I ain't so tough.  I guess one way to look at it though, with your 4runner, is this. That $3200 was probably a freak year. It also amortizes out to about $267 per month. I'm sure a new equivalent vehicle would set you back about $500 per month for a 60-month term and minimum down payment. Possibly more. Now, if you're still making payments on that rig, which is quite possible with it being a 2005, having to throw another $267/mo at it in maintenance/repair does hurt. But everything needs maintenance eventually. Even the most reliable vehicles need brakes, tires, belts, tranny servicings, coolant flushes, etc. So you're always going to be paying more than just the monthly payment, no matter how reliable the thing is.
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Replying to: Mr_Shiftright (Jul 30, 2008 12:52 pm) By the by, my Honda was a pretty good deal, too. ;P absurdly low MF (about 0.9%, IIRC) and overinflated residual, just like the Pac. If only I could stand it enough to have kept it the full term. |
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Replying to: tmgeneral1 (Jul 30, 2008 10:50 am) True, but the statement requires some qualification. The finance company may "own" the vehicle, but it can't restrict you from driving 30,000 miles per year. A lease company can. The financier can't make you pay them more money because of cosmetic body damage. A lease company can. The financier can't keep you from painting the car green with orange flames. A lease company can. So, while a finance company technically "owns" your car until you pay it off, while you're paying, the car is truly YOURS. With a lease, the car is NEVER yours. The company owns it before, during, and after the lease. Plus, they're reasonably certain that you'll lease another car from them when your current lease is over, since you'll have no car and no equity when the lease ends. Lease companies not only get other people to pay for THEIR cars, they create a perpetual market for more of the same. It's a great deal for them, and a sucker's deal for the customers. |
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Replying to: andre1969 (Jul 30, 2008 12:54 pm) Now of course because I used the truck for work I could write off some of my actual expenses but the unpredictability was what knocked me for a loop. With the 4runner, the plan was to drive it 'til it dropped. However, once I got a load of the repair bills I changed my mnd. |
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Replying to: stmss (Jul 29, 2008 9:44 am) Not quite. GMAC will no longer offer subsidized leases in Canada. Meaning, they will no longer inflate the residual in order to make the payments lower. Here's where it gets fishy... As everyone knows, Cerberus owns 80.1% of Chrysler Holdings LLC (which in turn owns 100% of Chrysler Financial). Cerberus is also the majority owner of GMAC (51% - General Motors owns the other 49%). So these leasing decisions could be coming from Cerberus, not necessarily the automakers. kcram - Pickups Host |
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Replying to: kcram (Jul 30, 2008 8:45 pm) I don't like the sound of that.
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Replying to: Mr_Shiftright (Jul 31, 2008 7:47 am) |
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Replying to: Mr_Shiftright (Jul 31, 2008 7:47 am) |
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Automotive News just reported the following: - As I noted before, GMAC will end subsidized leasing in Canada - GMAC and GM will cut the volume of US subsidized leasing - The SmartBuy balloon program will be discontinued - Dealer floorplan rates will increase - Consumer financing and lease (money factor) rates will increase This follows GMAC's quarterly report of a $2.48-billion loss. All of the above are effective August 1, except for the floorplan rate increase which starts September 1 and SmartBuy which will end September 30. kcram - Pickups Host
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Automotive News & Views The End of Leasing? And do you care?
