^ Honestly, no, I don’t. I only care about GM’s Australian division. 
if they do that it throws off my plans for my next vehicle, although that’s 2.5 years away and i could always do a 3rd party lease. But there’s too much downside risk and capital tied up to own a domestic for me, even though i heart the LSx.
^ Joe, you make it sound like the only financially responsible way to have a car is to lease it. Maybe if you want something different every 2-3 years, but if you’re going to hang on to a car for a while buying still makes a lot of sense.
Yeah, I was speaking only in terms of myself. I drive cars that depreciate fast, get sick of cars after 2-3 years, and I don’t like not having a warranty. Buying a fast-depreciating car new and selling it after that period of time is pretty much the worst thing you can do. If anything I’d have to go a year or 2 old.
Leasing is for poor people.
Gotcha. Leasing makes sense then. I bought my GTO because I plan to keep it for a long time (7+ years at the rate I’m putting miles on). The lack of warranty isn’t a big deal for me since I enjoy working on cars now and then and have the option of carpooling with the wife if one vehicle is down for a week or so.
Okay, back up your opinion or GTFO.
05 Corolla, and Civic residual values are around $9k-$11k, depending on trim and mileage allowances. They are worth generally around $13k, on trade. A new redesigned car, with no money out of pocket and the same payment or even lower gets a big thumbs up from me.
That’s the cool part if you lease it. If that’s the case, you buy it at the end and use the difference as your down payment. If its the other way around, you turn it in and walk away.
Heaven forbid someone would want a lower payment on a newer car, and doesn’t want to spend a lot of money out of pocket or be buried in the vehicle 1-4 years down the road. It makes NO sense to borrow an investment that depreciates and use the extra money towards a CD or annuity which appreciates. :bloated:
The dealership will be more than happy to buy it off lease and give you the excess money towards money down on a new lease.
yeah, karter is an idiot, as usual. nothing to see here.
the funny thing is that the more wealthy you are, the more likely you are to lease.
but I so agree that people who use leases to get a low payment on a car that they otherwise couldn’t afford are fools.
Now they are happy to only be taking half of the loses.
Stuiped Res Cap
Our division could post all time highs and we still won’t get a bonus
Many wealthy people have leases because it is easier for tax purposes especailly in corporations.
But wealthy people are usually smart with their money. That is why I will buy used no matter how much I make. Why buy a 7 series for 80 when a 6 month old one is 70.
the love stains the previous owner left in the back seat?
Chase to end leasing for Chrysler
Chase Auto Finance said today that it will not finance leases for Chrysler LLC vehicles.
Chase was afraid auto dealers would flock to it in the wake of Chrysler Financial’s decision on Friday, July 25, to stop financing leases, said Chase spokeswoman Mary Kay Bean.
Chase is concerned about declining vehicle values, said Chase spokeswoman Nancy Norris. Lease payments are based on the residual value, the vehicle’s estimated value when the lease expires.
“We want to keep our lease portfolio small,” Bean said. Chrysler vehicles make up 1 to 2 percent of Chase’s auto finance portfolio, Bean said. She said Chase wants to maintain that level.
Chase Auto Finance, a unit of JPMorgan Chase & Co., notified dealers of the move Monday, July 28, Bean said.
Auto lease writedowns drive $2.5B loss at GMAC
Andrew Grossman
Automotive News
July 31, 2008 - 8:27 am ET
DETROIT – GMAC Financial Services said today it swung to a net loss of $2.48 billion in the second quarter as its auto finance business cratered on weaknesses in the leasing market. It posted a $293 million profit in the second quarter of last year.
The company’s automotive finance business lost $717 million in the second quarter. The company said that was largely due to $716 million in writedowns related to its North American leases. GMAC said the writedowns were due to the falling residual value of leased trucks and SUVs. GMAC said that “more than offset” profits from its international business.
GMAC said sport utility vehicle leases made up $12 billion of its $30 billion North American lease portfolio as of June 30. Trucks made up $6 billion and cars were $12 billion.
New vehicle financing was also down in the second quarter. GMAC signed $12.4 billion in retail and lease contracts last quarter, compared to $14.0 billion a year ago.
GMAC’s quarterly loss was also driven by a $1.86 billion net loss in its troubled residential mortgage business.
General Motors owns 49 percent of GMAC. Cerberus Capital Management LLC, the private equity firm that controls a majority stake in Chrysler LLC and Chrysler Financial, owns the other 51 percent.
:thankyou:
We leased wifey’s car because we didnt want to commit to a vehicle we couldnt afford while I was in school. At the end of the lease we get something new that is better for stuffing kids into. I wanted her to get a focus for like 175 a month but it didnt work out that way :lol: … freakin VW.