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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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#93 of 95 Re: Leasing ends? [nippononly] by kyfdx HOST Sep 02, 2008 (11:48 am)
Replying to: nippononly (Sep 02, 2008 11:36 am) Well.. .I'd never get a car I didn't want, just because it had a great lease deal (though I've been tempted). I think that's a recipe for disaster, either way, buy or lease... because, you'll be looking to get rid of it, no matter what the cost.   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 Replies to this message: dtownfb (Sep 03, 2008 9:13 am) ponytrekker (Sep 03, 2008 4:58 pm)
#94 of 95 Re: Leasing ends? [kyfdx] by dtownfb Sep 03, 2008 (9:13 am)
Replying to: kyfdx (Sep 02, 2008 11:48 am) 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..   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.
#95 of 95 Re: Leasing ends? [kyfdx] by ponytrekker Sep 03, 2008 (4:58 pm)
Replying to: kyfdx (Sep 02, 2008 11:48 am) 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.. That's for sure.   In my opinion, if you don't keep a car for 100k you're better off leasing.

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