Leasing Issues
Thread Starter
Le Mans Master
Joined: Oct 2005
Posts: 6,503
Likes: 2
From: Oklahoma City OK
Leasing Issues
I have been a big believer in Leasing for several years now, because it allows me to drive a very nice car for little money monthly. Also I enjoy switching my cars every couple of years.
Problem is now with the financial crisis that US is in GM along with most domestic manufacturers are ending lease specials. In fact they are making it harder to leas than buy.
with that said, I doubt I will be able to afford a new 2010 vette when my 2008 lease expires.
Are the 3rd party lease programs worth looking into to, or should I just look into buying a older vette that I can afford?
Problem is now with the financial crisis that US is in GM along with most domestic manufacturers are ending lease specials. In fact they are making it harder to leas than buy.
with that said, I doubt I will be able to afford a new 2010 vette when my 2008 lease expires.
Are the 3rd party lease programs worth looking into to, or should I just look into buying a older vette that I can afford?
Racer
Joined: May 2008
Posts: 257
Likes: 0
From: Lexington KY
A lot can and will change between now and 2010. 3rd party lease companies are fine. I know several people who use them without issue.
Problem with a lease is you have to give back your 2008 Vette, LOL
Problem with a lease is you have to give back your 2008 Vette, LOL
Thread Starter
Le Mans Master
Joined: Oct 2005
Posts: 6,503
Likes: 2
From: Oklahoma City OK
I like to switch my car every couple of years and it makes more since to lease than buy.
It just looks like I may have to settle on a lesser vette than the 2010
Team Owner
Joined: Aug 2003
Posts: 24,491
Likes: 312
From: Scottsdale AZ
To each their own . . but my perspective is that leasing works well if you've got a business advantage to do so - - and can cream off at least a portion of your lease payment to 'business use".
Given the economy and the Corvette market place - - it sure seems like a great time to buy ! You've got to believe too that lease residuals are probably going to fall significantly above the market-- so lenders are going to get squeezed. Buying a pre-owned high line car would seem to be a good value - - my wife piles on miles in her real estate biz, and buying 1-2 year old Benzes off lease has proven to work well for her.
Hopefully, the economy will be well on it's path to recovery by the time your lease expires, but for leases ending before the end of `08 - - it sure seems like there are some great incentives to buy. It sure seems like you're on a good path to evaluate the economic factors between now and then.
Good luck -
Given the economy and the Corvette market place - - it sure seems like a great time to buy ! You've got to believe too that lease residuals are probably going to fall significantly above the market-- so lenders are going to get squeezed. Buying a pre-owned high line car would seem to be a good value - - my wife piles on miles in her real estate biz, and buying 1-2 year old Benzes off lease has proven to work well for her.
Hopefully, the economy will be well on it's path to recovery by the time your lease expires, but for leases ending before the end of `08 - - it sure seems like there are some great incentives to buy. It sure seems like you're on a good path to evaluate the economic factors between now and then.
Good luck -
Last edited by CQRT; Aug 27, 2008 at 11:19 AM.
Thread Starter
Le Mans Master
Joined: Oct 2005
Posts: 6,503
Likes: 2
From: Oklahoma City OK
besides... who know what the new vette will have under the hood... maybe a super charged 6 to comply with BS CAFE Laws
Instructor
Joined: Dec 2007
Posts: 153
Likes: 0
From: Oceanside CA
That being said, I leased my '08 as a hedge against it being as big a support/repair nightmare as my '06 GTO. If it ended up being as much trouble, I wanted to be able to walk away from it Scot-free when the lease was up.
I'm 8 months in now though, and so far it's looking like a keeper. So chances are I'll be purchasing it at the end of the lease.
Last edited by Nightclaw; Aug 27, 2008 at 11:26 AM.
Corvette Stories
The Best of Corvette for Corvette Enthusiasts
How Much Horsepower Every Corvette Engine "LOST" in 1972
Joe Kucinski
Top 10 DOs and DON'Ts for Protecting Your Convertible Top!
Michael S. Palmer
Top 10 Most Explosive Corvettes Ever Made: Power-to-Weight Ratio Ranked!
Joe Kucinski
150 hp to 1,250 hp: Every Corvette Generation Compared by the Specs That Matter
Joe Kucinski
8 Coolest Corvette Pace Cars (and Replicas) of All Time
Verdad Gallardo
Top 10 Corvette Engines RANKED by Peak Torque (70+ Years of Muscle!)
Joe Kucinski
Corvette ZR1X Will Be Pacing the Indy 500, And Could Probably Race, Too!
Verdad Gallardo
Top 10 Corvettes Coming to Mecum Indy 2026!
Brett Foote
Top 10 C9 Corvette MUST-HAVES to Fix These C8 Generation Flaws!
Michael S. Palmer
Melting Slicks
Joined: Jul 2008
Posts: 3,402
Likes: 5
From: Long Island NY
Most of those leasing companies will follow suit with the major manufacturers. The only reason they still have competitive leases is due mostly to ridiculously high residuals. As you can see here with pre-owned Corvettes, their value is nowhere near what the residual is.
Would you lease your home or own it? I think the answer is pretty simple.
Buy the next one.
Would you lease your home or own it? I think the answer is pretty simple.
Buy the next one.
Melting Slicks
Joined: May 2006
Posts: 2,324
Likes: 0
From: MN
The OP's question depends totally upon what the financial markets look like in 2 years. Who knows?
Leasing only make sense if (a) you trade cars every 2 years, (b) you don't drive the leased car more than a little during that time (mileage restrictions), and (c) you are willing to simply pay "rent" for a car. If that's you, then leasing is fine. The problem is, today, that you cannot get a lease to save your life. Hopefully, that will change, but it only will if the people who chose a lease because they couldn't afford a loan payment stay out of it.
Leasing only make sense if (a) you trade cars every 2 years, (b) you don't drive the leased car more than a little during that time (mileage restrictions), and (c) you are willing to simply pay "rent" for a car. If that's you, then leasing is fine. The problem is, today, that you cannot get a lease to save your life. Hopefully, that will change, but it only will if the people who chose a lease because they couldn't afford a loan payment stay out of it.
Melting Slicks
Joined: Feb 2004
Posts: 2,791
Likes: 44
From: Loudon/Lake Mary Tennessee/Florida
Team Owner
Joined: Mar 2008
Posts: 21,502
Likes: 461
From: Southern Utah
And at the end of the lease, remember that the buyout number is VERY negotiable....don't just figure that you can't make them an offer. Their options are to have the dealer make them an offer to put it on their lot, or sell it at auction, and we know what kind of numbers auctions bring.
I read an article recently that compared the car leasing situation to the real estate situation. There are many ways that this is a good comparison...and the days of those crazy high residuals are over, just like the days of negatively amortized home loans are over.
I read an article recently that compared the car leasing situation to the real estate situation. There are many ways that this is a good comparison...and the days of those crazy high residuals are over, just like the days of negatively amortized home loans are over.
Team Owner
Joined: Aug 2003
Posts: 38,314
Likes: 35
But leasing a Corvette or any other pleasure vehicle, is, I agree with you, never a great idea. Money up the bird's a$$.
When you get done making all of those payments, you still don't own a Corvette.
Advanced
Joined: Jul 2000
Posts: 72
Likes: 1
Leasing Observations
To those of you who have stated that it does not make sense to lease a vette or have stated that leasing is for people who cannot afford a loan--you have missed some important issues. For one issue-leasing is more costly in the long run than purchasing,so that essentially refutes the notion that leasing is for people who cannot afford a loan.
I've been leasing for over 35 years.Nothing is nicer than having a 24 or 27 month lease and getting a new vehicle as often as a lease allows. Secondly, the only time that I had problems is when I purchased a 1998 c5 and then tried to sell a mint car with only 12,000 miles after 6 years. It was very difficult to show the car and deal with the multitude of callers and lookers. A Pain in the behind to say the least.
Why not pay for the portion of a car that you are using---and then get a new one.Makes perfect sense to me.
Just my 2 cents
I've been leasing for over 35 years.Nothing is nicer than having a 24 or 27 month lease and getting a new vehicle as often as a lease allows. Secondly, the only time that I had problems is when I purchased a 1998 c5 and then tried to sell a mint car with only 12,000 miles after 6 years. It was very difficult to show the car and deal with the multitude of callers and lookers. A Pain in the behind to say the least.
Why not pay for the portion of a car that you are using---and then get a new one.Makes perfect sense to me.
Just my 2 cents
Advanced
Joined: Aug 2008
Posts: 76
Likes: 0
From: Boca Raton Florida
A. I too enjoy a new car every 3-4 years...
B. Always covered under warranty
C. I don't believe in buying a depreciating asset that is worth less and less each day
D. Quite frankly the last experience with an american car I had was not great as far as quality and I have had my 2008 vette for one month now and had a few issues... where i found myself saying "maybe I am glad I didn't buy this car" (i do love the car though
)E. And yes the payment will be substantially less so it does provide the buyer to get more car for the money so to say... however good luck finding a car for $50K for 24 months with little down for $400 a month
On the other hand... I was in the similar situation with the lease issue and was approved just under the wire with US Bank... they are no longer leasing Hummers, Vettes and other premium vehicles from GM (According to the lady in the lease dept) The GM lease for the vette is F**ING horrible... litterally $300 more per month for the same deal... I do believe that fifth third bank (www.53.com) is still leasing check into that.
Good luck
Burning Brakes
Joined: Jul 2004
Posts: 962
Likes: 1
From: Atlanta Georgia
I have only lost on a lease once. When I negotiate the numbers, it works out I generally am paying a 3 to 4 percent interest rate over the 3 year term based on the price I base the lease on. The downside is I cannot get out early...the upside is no loss at the end when I give the car back.
Melting Slicks
Joined: May 2006
Posts: 2,936
Likes: 260
From: Westchester County New York
Unless of course individual dealerships get the permission to go to third party leasing companies for their clients...
I personally just went through www.leasecompare.com which is affiliated with this forum and got a great lease on an '08 (and GMS) that was waaaaay less than GM could ever do.
In talking to the salesguy at the local dealership I bought the car in he said they have to look real hard at going with these third party companies as they would be able to move many more cars a month if they did...
Pro
Joined: Mar 2008
Posts: 659
Likes: 0
From: Brick NJ
Most of those leasing companies will follow suit with the major manufacturers. The only reason they still have competitive leases is due mostly to ridiculously high residuals. As you can see here with pre-owned Corvettes, their value is nowhere near what the residual is.
Would you lease your home or own it? I think the answer is pretty simple.
Buy the next one.
Would you lease your home or own it? I think the answer is pretty simple.
Buy the next one.
Your home will likely appreciate. A car depreciates...unless you dont drive it for 20 years and let it sit.