How do you lease a Corvette?
Thread Starter
Burning Brakes
Joined: Feb 2001
Posts: 866
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From: Peabody,MA,USA
How do you lease a Corvette?
I recieved an add from corvettecity.com and they lease and sell corvettes. I always though that a lease was, basically paying for the depreciation of a new car. This make no sense with a 65 Vette which may go up in value over the term of the lease. These guys must make a killing off of leasing vettes, after your lease is over you give them back a car which is worth the same or more as when you leased it?
Safety Car
Joined: Feb 1999
Posts: 3,631
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From: Fountain Hills AZ
Re: How do you lease a Corvette? (73Ken73)
I see it the same as you. There's no shortage of guys that, mainly because they've been blinded by "Vette Fever", will overlook the obvious and do whatever is necessary to get one. Most of the dealers that offer leases on classics are in a no lose situation as they bought the car well below actual value and are selling (or leasing) it at well above their cost. If the buyer flakes out and they have to repo, they know the first purchaser wasn't the only guy that fell off the turnip truck. The same scam is used by most "we finance anyone" dealers and they have no shortage of stupid buyers to sell to.
Melting Slicks
Joined: Apr 2002
Posts: 2,103
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From: Tucson AZ
Re: How do you lease a Corvette? (Vetterodder)
You have to understand leases. A lease ia actually a rental. You are paying for the us of the car during the term. the lease rate is a calculation based on teh value of the car and the protion you are using. The key to any lease is the residual value. You, the leasee, have to be told in the contract, what the value of the car will be when the lease expires. You then have the right to either buy the vehicle for that price, or return it and pay any fees. If the residual value is more than the car can sell for, the car is generally returned. If the residual is less than what the car could sell for, buy it. I would guess the deal is still a "scam" or come on. All the deler would have to do is over value the car for the residual. While it may be worth the price someday, it would mean paying more for the car today. :jester
Burning Brakes
Joined: Mar 2002
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From: If you can read this, thank a teacher. If it is in English, thank a veteran.
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Re: How do you lease a Corvette? (73Ken73)
I have never understood leases. It seems to me that you pay as much or more per month than it would cost to buy the car, except you can only put so many miles per year on the car without paying a penalty and after the term expires, you don't own it as you would if you had purchased it. Why in the world would anyone do that? :confused: :confused: :confused: Perhaps someone can educate me here?
Safety Car
Joined: Mar 2000
Posts: 4,077
Likes: 27
From: Northeast South Dakota
Re: How do you lease a Corvette? (L48Shark)
I have to second the motion on not understanding leases. They just don't make a bit of sense to me. If I buy something I want to own it, for it to be mine. I also want to be able to decide on my own how far I can drive MY car. I guess that's why I haven't leased anything.
Melting Slicks
Joined: Jul 1999
Posts: 3,201
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From: Clifton Park NY
Re: How do you lease a Corvette? (Dalannex)
I'll join the club: I too have never understood the concept of leasing. I also got the ad that Ken is talking about, and was even more puzzled with the idea of "leasing a classic"... :confused:
-Pedro
-Pedro
Racer
Joined: Nov 2001
Posts: 251
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From: Lake Hughes CA
Re: How do you lease a Corvette? (73Ken73)
A lease does hold one big advantage. Taxes....... Lets say you own your own business and need a company car. With a lease you should be able to write off the total amount of the lease as a bussiness expense, where is you bought the car, you could only write off a part of the amount. The IRS has changed rules on leasing somewhat but if you own another car for personal use you normally can pull this off. YMMV, ask your CPA for details.
