Originally Posted by cstroked

This is very, very true and it's sad that it is so. From a business perspective those cars are wants not needs - it's often all about status as you correctly point out

Disagreed. Financing is often offered with discounts but not with rebates you would get if you paid cash. Interesting way to look at it though. If you are ever paying FULL MSRP for an American car there is something seriously out of whack.

If you can get 5-8k less then take it. You may come out ahead if you finance with a bank anyway when factoring in inflation. This is where the buyer has to process the options and think (oh no!!!). As cheaply as banks had been offering financing - I saw as low as 3.4% on new cars - it may make more sense to take the rebates and finance elsewhere. I worked this out mathematically a few times and it costs less to do that, especially in instances where Porsche was offering 1.9% or an additional 10-15k off. You had to have a rate exceed 4.5% before it would cost you more.

As far as know many banks have stopped leasing. The only one that will lease here is USBank and it was a crapshoot between their programs and Audi/Porsche etc as to who would be better - so what I'm saying is empirical evidence suggests the odds are more 50/50.

Originally Posted by GetLiquidNow

I agree with everything you said. Just wanted to point out, that I bet the number is even lower than 33% - probably under 20%.

Originally Posted by bmoores

I only buy vehicles that stretch me to my absolute financial limit. If it means ramen noodles for a year it means I'm driving it home. That simple. Paycheck to Paycheck for life. Who needs savings!!!
.

Originally Posted by h20skier

LMAO...Your clients are the typical client that can't really afford the car. Yes you have some clients that are flush and have no problem with whatever payment they end up with but 75% of your clients are driving a car for Status and let's face it Stoppie American's buy status whether they can afford it or not. I would say of the 75% of these clients only really 50% of those can actually afford the car if they don't have a job. So my guess is only really 33% of your clients can actually afford their MB or Audi or Porsche without income and a heavily interest filled lease.


While I agree it's easier to turn the car in and walk away the FULL msrp you pay to obtain the 0% financing has interest built into it. Dealers will deal on pricing if you have no financing involved and very few will come down if you are trying for the 0%...I'd rather pay $5-8k less on a Sub---$100k vehicle than pay front loaded interest charges. You can always trade your vehicle in if you pay cash to save the headache of trying to sell it and as an added bonus in our state you get the 9% Sales Tax credit and you do not get this with a lease.


I will never argue with someone that leases there normal driver. As long as the lease payment would never put them in stress EVER.


Again it's just front loaded interest GMAC is offering. I totally get the "why write a full check" theory here but if you pay an extra $5-10k up front you still lose the same in depreciation over 5 years and still have lost that extra $5-10k you over paid to begin with.


No way you find more than 1 lease in a 100 that doesn't favor the bank leasing to you. They aren't that stupid anymore. Years ago leases were closer than today but that has all gone away.




That was F'n funny. I hadn't planned on getting on TS today until I saw your response and I had to read wtf Cstroked was talking about. I've got no reps to give but will asap.


Stop being Rational. This is TeamSpeed Biatch!







In the end it depends on what you are doing with the car. Banks do not Lease to individuals without their best interest at heart. Banks make Bank because people lease. Yes there will be stories like the Pontiac story that banks lose some but in the end they make a lot of money off of people that lease. Plain and simple.

Leasing will make sense if you are purchasing 1 car that you will use almost exclusively and you do the quick math. If your 24 or 36 payments total what should be close to normal depreciation and you still get a small write off then and only then does it make sense.

Leasing is an Avenue only for Porsche MB Audi etc to peddle their cars. Without creative financing only 10% of the country will walk into their dealerships and write a check for their HIGHLY OVERPRICED products. Bank loans are close to the same but in the end I suspect some marketing guru years ago decided calling it a Lease (renting) verses the God awful permanent term "Car Loan" was more attractive to the typical car purchaser so they stuck.

Every 3 years or so I buy myself a new company truck. Every 3 years or so I find the truck I want and tell the dealer what I will write them a check for. They settle on my price and I then will ask them do they have any type of lease for these things. Of course I can take a look to see if Leasing payments come close. I've never leased because they NEVER have. Yes you get to write off your payments but you also get to depreciate your asset as well when you purchase out right. They are almost a wash, but in the end if the $hit hits the fan never once will I be troubled with a monthly payment that could take my precious company truck away. It's simplicity at it's finest for me and in the end I get to sleep better at night knowing I have no monthly burden.

Originally Posted by bradb1us

I got $6k off a new Denali with my 0% financing.

And how do they front load interest when the interest rate is 0% (aka no interest)? I'm not trying to be rude--that just doesn't make any sense to me.