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No wonder they need a bailout...

Discussion in 'General Automotive Discussion' started by Andy348, Apr 10, 2009.

  1. Andy348

    Andy348 Formula 3
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    Nov 4, 2007
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    Andy
    My dad got a notice last month that his Dodge Durango's, which he's had for practically 3 years, lease was up in June. Although he thought it was over in October, he didn't mind giving it in "early"... A new car, right?

    Wrong. Today we went to several different dealerships, starting with Mercedes, then Ford, then Mazda. My dad is paying $600/mnth now and he was hoping to downsize a little in terms of size and $$. So off we went to Mercedes to check out the GLK. After some customization, it ended up at approx. 750/month. Not bad, after all, it is a Benz and we expected to pay a bit more. Oh well, take the guys card and check out Ford for the Edge.

    First thing that caught our eye was the Flex, but with Montreal winters, way too low. My dad test drove the edge while I foolishly played with all the buttons - a fun car altogether, nice sounding exhaust, etc. Heres the kicker... $850 A MONTH!!! Insane. We practically laughed our way home.

    One last stop though, Mazda for what I think was the CX6. Not exactly my dads favourite car, but we went there out of curiosity. Customized... $750/mnth.

    I do realize it has to do with the whole depreciation thing (actual word slipped my mind) and that the Benz was very high at 62%, which was great. I just don't understand how Ford thinks they can get away with $100 more a month than a Mercedes!

    Needless to say, nothing was in our price range and after a bit of looking online, we'll either go for a buy out of the current car or take over a lease.
     
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  3. Pcar928fan

    Pcar928fan Formula 3

    Jan 21, 2008
    1,685
    Austin, TX
    Pretty clear at those lease rates they really want you to BUY the car... probably any of the American cars (and the Mazda, which is probably built in America) could be BOUGHT for monthly payments less than what you were quoting... If not then you are exactly right...WHO would pay that when for LESS money they can have a M/B?! Only an idiot!
     
  4. Bullfighter

    Bullfighter Two Time F1 World Champ
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    Jan 26, 2005
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    #3 Bullfighter, Apr 10, 2009
    Last edited: Apr 10, 2009
    You can find huge lease differences from dealer to dealer on the same car as well.

    Figure out what you want, and as long as it's in stock somewhere you can shop 3-4 dealers for an apples-to-apples lease payment.

    Go to the dealership, be flexible on color/options (most cars are pretty optioned out) and when they ask you where you want your payment to be make sure you give them a low number (not stupidly low, like $100, but go to edmunds.com, use their calculator, and then drop "your desired payment" lower). Remember to hold the down payment and lease term constant. Any idiot can stretch it to 60 months and make the monthly payment less.

    There was an approximately $180/month spread on an identical car/lease last time went through this. Yes, it was a p.i.t.a., but I've done very well this way a couple of times.

    Just remember the golden rule of car leasing: You can leave the dealership without signing a deal. Even if it takes an hour, walk if you're not getting what you want. It ain't a one-of-a-kind collectible.

    Good luck. I actually like shopping leases becauses if you lock the term and down payment as constants, the dealer can do very little to b.s. you. What they can do is try to pad the deal later with the usual paint sealant, upholstery protection, etc. etc. You can always just say no to that.

    OTOH, there must be some great deals around on barely used CPO vehicles, so buying might be better at this point.
     
  5. ForzaV12

    ForzaV12 Formula 3

    Sep 15, 2006
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    Simply an apples to oranges comparison. Nothing to do with domestic vs. foreign. If you can't get a great deal on a domestic at this point in time, you are not asking the right questions, are waaaay upside down on a loan or have poor credit(not saying the last two apply to you).
     
  6. Garymyman

    Garymyman Formula Junior

    Sep 15, 2008
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    New Orleans
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    Gray
    No one wants to lease a car right now. I went truck shopping and the guy laughed when I mentioned leasing, and then told me it'd be about 1500 a month. Take advantage of the current finance rates and buy something that will (hopefully) retain some value.
     
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  8. Andy348

    Andy348 Formula 3
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    I've got to disagree. My father had been in the car business for over 20 years so I believe he knew what questions to ask. I don't think they did a credit check either, but I was too busy checking out the cars :p :p

    @Gary:

    We were talking to the Ford dealer and he said that he was trying to renew F150 customers who were originally paying $500, now at $800. Pretty unbelievable.
     
  9. Buzz48317

    Buzz48317 F1 Rookie

    Dec 5, 2005
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    Michael
    #7 Buzz48317, Apr 12, 2009
    Last edited: Apr 12, 2009
    Hey Andy...NO domestic automaker is leasing SUVs and trucks. They are taking LARGE amounts of water on the lease turn ins so FoMoCo, GMAC and Chrysler Financial have all relieved themselves of some of the burden. Chrysler won't lease any vehicle (car, truck of SUV) and both GMAC and FoMoCo have decided to not lease SUVs and trucks any longer as they are getting beat up in the used car market, so the residuals have been getting hit hard too. I know that you said that your dad didn't think that the Flex would work but Ford is still leasing the Flex.

    You would be well advised to act pretty quickly on getting something as more and more banks are getting on the cut the lease bandwagon.

    BTW: in my most humble of opinions I actually think that their refusal to get hit with large chargeoffs from residuals that are far below the actual market for the car at lease end actually makes GM, Ford and Chrysler stronger in the market and they can use those funds to bring other product to the market and push the stuff that people are actually buying in large numbers. Won't be long before Nissan, Toyota, Honda and the Germans follow suit.
     
  10. amslb182

    amslb182 Formula Junior

    Oct 3, 2004
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    Ct
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    Andrew LeGrant
    This is the best comment so far. Im young but have some experience in sales at a nissan store and some at a chevy/cadillac store as well. If you want to have a laugh go check out what the residuals are on a new escalade. Thats why theyve stopped leasing. Its at a point where consumers for the big 3s product wont save any money with a lease, so they are hard to sell, and even with the low residuals the lenders are still taking baths at the auction.
     

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