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Smart Shopper Will Chrysler's Return to Leasing Help?
9 messages, Last post on Oct 28, 2009 at 10:57 AM
You are in the Smart Shopper Forum. Your Hosts are kirstie_h & tidester
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http://www.edmunds.com/insideline/do/News/articleId=157406 Will it be attractive to consumers, or is this another dead-end for consumers & Chrysler?
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Replying to: kirstie_h (Oct 01, 2009 11:33 am) I've never seen the advantage in leasing, at least for me, but if I did lease it wouldn't be a Chrysler. As I understand it (correct me if I'm wrong) The benefit of leasing is lost if you lease a car that depreciates rapidly. That eliminates any domestic car. You might be OK if you lease a Honda but if you believe that they are such a superior "last forever" car why would you want to give it back in 3 years? I guess that leaves BMW, an exceptional car that gets expensive to maintain after the warranty expires. When I recently bought a Chrysler product the salesman and I were going back and forth on price. As a gambit he tossed out the option of leasing. I stated that it didn't make sense to lease a car that lost value as fast as a Chrysler. He simply nodded in agreement.
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Replying to: oldfarmer50 (Oct 01, 2009 2:39 pm)
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Replying to: volvomax (Oct 02, 2009 10:54 am)
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Replying to: kirstie_h (Oct 05, 2009 6:58 am) The cost of the incentive is just accounted differently. Ideally you do a bit of all three incentives to spread the risk around. Bump the residuals a couple of points, offer a couple thousand in rebates and maybe forgive first month payment plus offer money factors under.00005
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Replying to: british_rover (Oct 05, 2009 11:07 am) They got into trouble by putting crazy high residuals on their cars to keep the payments attractive. They morgaged tomorrow for today's sales. When the three year leases ended, people walked away and the cars bombed at the auctions. It wasn't uncommon for some of the domestics to lose five thousand dollars and more. Then when gas hit 4.50 a gallon the summer before last, things REALLY went downhill. No, I don't see how they will ever be able to offer attractive lease numbers unless they want to repeat the same mistakes they made before.
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Replying to: isellhondas (Oct 26, 2009 6:15 pm) Its just like having a diversified investment portfolio to spread risk.
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Replying to: british_rover (Oct 28, 2009 8:37 am) Unless they are NUTS, they will set the residuals where they should be and that will make the payments too high for people to be attracted. But, I could be wrong... |
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