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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: nippononly (Aug 06, 2008 12:27 pm) Ohhh... they are full of somethin' alright. |
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Replying to: nippononly (Aug 06, 2008 12:27 pm) There's no way I finance a BMW (or any other car) over 84 months. Then it'll be time to look at the used Honda Civic market.
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Replying to: ponytrekker (Aug 06, 2008 1:53 pm) |
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Replying to: ponytrekker (Aug 06, 2008 1:53 pm) 
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If the car companies are getting out of leasing, because the cars are worth less than the residuals, then that is a pretty good indicator that the lease deals were better for the consumers than they were for the car dealers.. If your leased car is worth $3000 less than the residual at lease end, then you've saved $3000 over your lease term vs. financing.. regards, kyfdx
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Replying to: kyfdx (Sep 02, 2008 8:29 am)
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Replying to: Mr_Shiftright (Sep 02, 2008 8:38 am) The point being.... When you lease, you are locking in your depreciation on the down-side.. Many, many people found that they are thousands of dollars ahead of someone that bought a big truck or SUV, and now needs to sell. I don't mean to imply that leasing is for everyone, or even most people... Sometimes, even if a lease works for you, generally, you can't lease a specific car because that lease program is poor. On some cars, you are leaving thousands on the table, if you don't lease.. Also, tax deductibiliity implications rarely make a difference (rarely, not always). Even purchasers can deduct automobile costs, if eligible.. It isn't leasing, or not, that determines that.. regards, kyfdx visiting host |
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Replying to: kyfdx (Sep 02, 2008 11:09 am) The question then becomes: is there a REASON that the most rapidly-depreciating cars and trucks are that way? And does that reason(s) contribute to them being less desirable in the first place? The answer I have concluded on for myself in the past is yes. But I shy away from high-volume models, which tend to depreciate faster, because I don't like to have the same thing that half of America has. And then some models have higher depreciation because they fall apart faster, or are expensive to keep on the road once they are out of warranty. I would place most German cars squarely in this category. That's a reason I shy away from them, especially VW. Bottom line: I always buy the car, never the deal.
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Replying to: nippononly (Sep 02, 2008 11:36 am) Most really good lease deals aren't on the high depreciation models... Those cost so much to offer good leases on, that the manufacturer is usually better off throwing wads of cash, upfront (see Chrysler). It's actually high resale models like Honda and BMW that have historically had the best lease deals... Of course, a high resale model will have better numbers, anyway.. that is just how the math works... but, those companies just seem more willing to put their marketing dollars into the high residuals... Maybe, they think that perpetuates the high resale that they already have? I'm not sure, but there might be something to that.. Other manufacturers use advertised leases that are so convoluted that they don't make sense.... but, they do show a low monthly payment... That's where someone that is uneducated in leasing can really get shafted... These leases can come from almost anywhere, but locally, I see them on Mazdas and Infinitis, most often... If you keep your car for 100K miles... or five years or more... .then leasing isn't going to be for you, no matter what... But, if you trade every three years and drive between 30K-50K miles, then you can do well, if you know what you are doing and what to look for.. Of course, with lease support drying up... there might not be many good deals... on anything... I think that will cycle back around, eventually.. but, I'm not much of an economic prognosticator... regards, kyfdx
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Replying to: kyfdx (Sep 02, 2008 11:48 am) I read an interview with the chairman of Honda several years ago talking about resale value. This was right as rebates from the manufacturers were becoming common place. Two things I remember distinctly from that article is how Honda refrains from playing the rebate game since it hurts the resale value of the car. Whatever the manufacturer offers to the customer for a new car comes directly off the value of a used car. They instead use "dealer cash". It seems that maintaining a high resale value is instrumental to their business model. The second thing is he believed in protecting their suppliers by working with them as a partner and not squeezing their profits for every nickel to cut costs in the vehicle. |
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Automotive News & Views The End of Leasing? And do you care?
