Leasing a vehicle

calvinxxx

Member
Oct 4, 2004
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calgary
Should anyone be thinking of leasing a vehicle from one of the big three as of Aug 1 they will not be leasing. They are taking too big of a hit on the residuals with the increase in gas prices and the resultant fall in used vehicle pricing, especially on the bigger and more profitable trucks and SUV's. They ar suggesting an extended interest low program for up to 72 months to offset the payment differential and this puts the risk onto the consumer on the eventual value of the used vehicle. I compared two recent deals on this scenario. A fifty thousand SUV came out about the same under the proposed new deal and a 32000 car came out about 45 more per month.

Just a heads up It was only announced yesterday by Ford and GM
 

j.bassi

New member
Jul 14, 2006
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Should anyone be thinking of leasing a vehicle from one of the big three as of Aug 1 they will not be leasing. They are taking too big of a hit on the residuals with the increase in gas prices and the resultant fall in used vehicle pricing, especially on the bigger and more profitable trucks and SUV's. They ar suggesting an extended interest low program for up to 72 months to offset the payment differential and this puts the risk onto the consumer on the eventual value of the used vehicle. I compared two recent deals on this scenario. A fifty thousand SUV came out about the same under the proposed new deal and a 32000 car came out about 45 more per month.

Just a heads up It was only announced yesterday by Ford and GM
Alot of car companies have more than one leasing company that does their in house leases......so while gmac wont be leasing another company might step in and offer there services to lease that particular vehicle.....there are a couple of companies here locally that will buy the car that you are interested in leasing and then lease it to you in case you dont pass the some of the stricter requirements that most of the bigger companies require, say for instance proof of income and so forth.....
 

JustCallMeR

New member
Oct 5, 2006
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I remember reading an article about that in the paper. But my impression was that they WOULD still be leasing.

I think that what they were changing was that they would no longer be able to subsidize the leases (for the reasons mentioned) to use them for special promotions.

So no more low interest rate lease deals or no extra low monthly lease payment promotions by the Big 3.

The monthly payment and/or low interest rate promotions would now only be on purchase financing plans (or on the actual sale price). You'd still be able to lease your vehicle, but it would be based on the regular interest and regular monthly payment plans with much more realistic estimates of the future value of the vehicle when the lease ends.

I can't swear to it, because I couldn't find the article that I read, but I'm pretty sure that's what's going on.
 

uncleg

Well-known member
Jul 25, 2006
5,461
591
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I remember reading an article about that in the paper. But my impression was that they WOULD still be leasing.

I think that what they were changing was that they would no longer be able to subsidize the leases (for the reasons mentioned) to use them for special promotions.

So no more low interest rate lease deals or no extra low monthly lease payment promotions by the Big 3.

The monthly payment and/or low interest rate promotions would now only be on purchase financing plans (or on the actual sale price). You'd still be able to lease your vehicle, but it would be based on the regular interest and regular monthly payment plans with much more realistic estimates of the future value of the vehicle when the lease ends.

I can't swear to it, because I couldn't find the article that I read, but I'm pretty sure that's what's going on.
What he said. I just read the same article in The Province this morning. The question for me with the Big 3 Dealers, is will service improve at all ? I got a 300C and trying to get any warranty work done on it is just a bitch. It's always come back next week, and then they want to keep the car all day for an hours work. It's at the point it's just not worth dealing with the NA car makers anymore.
 

wpgguy

Banned
May 13, 2005
675
3
0
What he said. I just read the same article in The Province this morning. The question for me with the Big 3 Dealers, is will service improve at all ? I got a 300C and trying to get any warranty work done on it is just a bitch. It's always come back next week, and then they want to keep the car all day for an hours work. It's at the point it's just not worth dealing with the NA car makers anymore.
I've had the same problem with all of the Big 3 plus Nissan and Honda, Honda being the worst service I've ever encountered, including the Big 3. I don't know why anyone would ever go to a dealer with the exception of warranty work.
 

Feenix

New member
Dec 11, 2006
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I am here.
The report I read online said that leasing was gone, but that, at least GM, is considering long term 0% financing, which would make the payments about the same as lease payments.

This has one big benefit to the purchaser. At the end of the term you will own the vehicle, rather than being compelled to purchase your leased vehicle or leasing a new one.

Leasing was a popular option because it reduced the monthly out of pocket costs.
 

wolverine

Hard Throbbing Member
Nov 11, 2002
6,388
9
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E-Town
I've heard that the catch with those 0% financing deals is the amount of interest you'd normally pay is hidden in the sticker price or in one of their admin or documentation fees.

Is leasing a car ever been worth it for that matter? I may be dense but it seems to me that all you're doing is renting the car for the same purchase price and then you have to give it back to them after 3 or 5 years.
 

87112

Well-known member
Dec 13, 2004
3,622
610
113
*&^%
There are no hidden tricks to leasing a car. You pay for the time you use the car and the depreciation which is clearly stated in the time that you will lease the car. I'm leasing my Accord, got 1.9 interest for the 3 years that I am leasing it and at the end will have a purchase option which I intend to use since its been a great car. I have 7 months to go and will refiance the difference. Leasing takes an unfair hit because everyone says you give the car back and have nothing to show for it, not true, all leases have a buyout.
 

wilde

Sinnear Member
Jun 4, 2003
3,019
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There are no hidden tricks to leasing a car. You pay for the time you use the car and the depreciation which is clearly stated in the time that you will lease the car. I'm leasing my Accord, got 1.9 interest for the 3 years that I am leasing it and at the end will have a purchase option which I intend to use since its been a great car. I have 7 months to go and will refiance the difference. Leasing takes an unfair hit because everyone says you give the car back and have nothing to show for it, not true, all leases have a buyout.
If you are good with financial calculations, you will find that you would have been better off buying the car with a bank loan in the first place. Just present value all your cash outflows and compare it with straight financing. You will be shocked. I have done this at car dealers for my friends a couple of times. Needless to say, the sales manager was not pleased.

One of the main purpose of leasing is to put people who ordinarily would not have been able to afford a certain car (via financing) with lower monthly payments. You do get some equity if like honda761 you exercise the buyout option at lease end, but not as much as you think. And certainly not as much as if you would have financed in the first place.

.
 

Bartdude

New member
Jul 5, 2006
1,252
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Calgary
Leasing has always been a rip-off, in my opinion.

The limit they place on how many ticks you can drive before they penalize you (typically 20K) was always the big catch for me. If you have to drive to and from work, that pretty much uses up all the mileage you can use up. In a city like Calgary, my average yearly KM tends to be in the 25-30K range.
 

big k

Active member
Aug 8, 2003
298
29
28
Winnipeg
You can tailor a lease to your driving needs.You can prepay for KMs
if you're going to use more than the low km 20 k or reg kms 25k. The
horror stories about big km fees at the end is when the customer just
wants the lowest payment today and won't look at what he will really
be driving. Then 3 years later he comes in and has a big km charge
and he forgets that he only wanted the low km then it becomes
everyone else's fault. I have seen it happen many times. I have lots of
customers that get the correct amount of kms and at the end just walk away with no extra charges.They lease again and never have any complaints.
We lease vehicles at the same price whether they are purchased cash
or leased. Leasing is just another way to pay for the use of your car.
Remember you don't own your car till you pay off the bank anyway!!
 

slamma

New member
Dec 4, 2006
93
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0
Wilde is right on the money. Leasing a vehicle is just like getting another credit card and paying only the minimum amount each month. In the end you have less than fuck all compared to purchasing it at the outset.
 
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