Chrysler plans to exit leasing business

WOW!~!!

 

Wow, thank you gas prices.

 

Doesn't bother me, I honestly dont understand why people lease to begin with

 

From a beancounter perspective, it can make sense if you look at the time value of money.

 

I may be able to see that from a very few persons perspective BUT if you drive as much as I do 20k+ miles a year leasing is actually alot more expensive since they only give you X amount of miles per year

 

I am a bean counter (CPA) and I did the TVM calculations on a car and I estimated what the car would be worth after the lease and it became very obvious to me why dealers push leasing so much. I felt I was using a pretty fair estimate of the car would be worth at the end of the lease.

However, with the value of SUVs dropping like they are, I can see why the American automakers are getting hammered. The less the resale value of a car when the lease is over, the less money you make on the lease. So if you leased an SUV a few years ago, you may be the exception and made out like a bandit when it is time to turn the SUV back in instead of trading it is for next to nothing.

 

Does that mean Chrysler will not lease PERIOD? Or just not through their own bank?

 

Yes. the market has changed the fundamentals. I like ownership so I do not listen to sage financial advice.

 

Interesting, I can see why leasing is important to some people as for me I've never leased a vehicle but the more I grow my businesses the more I see the important of leasing...oh well I don't take care of the fleet side of the business so I don't need to worry about it :shrug:

 

Just not throught thier own financing arm

 

Wow is right.

 

My parents lease their company vehicles and it's actually beneficial since it counts as a tax write-off pretty much wherever we go. What's nice about a lease is you can definitely negotiate your terms, if you're good at it. For example, you can choose mileage allowance per year, out the door costs, etc. Another privilege of having a lease is that after your lease is up, you have the option of leasing another brand new vehicle. You'll receive all the new perks of a brand new vehicle and won't have to deal with the headaches of an aging car.

IMO if you're self-employed and making quite a bit of money, a lease is definitely a great idea. We just picked up a Toyota Tacoma Double Cab ($25,615 MSRP) without putting money down or drive-off costs for $27k. Optional equipment included 16" alloy wheels ($400), LSD ($390), SR5 package ($1525), V6 towing package ($650), and TRD floor mats and door sills ($199). Sticker price was $29,464 including the $685 Delivery Processing and Handling fee.

All in all, I think we came out pretty well, hehe.

 

I leased once, when I was a college student and after that experience, I swore not to ever lease again.

 

I never liked the idea of a lease on a car. Seems like it has its pro's and its con's.

 

For a business owner it makes sense. I have always leased my work vans as it allows me to drive a newer, more reliable vehicle. The payment is written off 100% as its a cargo van and if you bought it outright, you would be paying tax on the company profit that is paying for the van. Just my two cents.

 

because buying a $$$$$$ car every year can add up

 

And why would you need a new set of wheels every year?

 

For us, every 3 years seems to be the magic number, hehe.

 

wow...again. Why?

 

Because having a new set of wheels is nice! As mentioned if you lease a 50K car the amount of REAL money that you spend could very well be less than 50K. Moreover, it makes sense for business to lease their vehicles unless they need odd ball equipment, in which case it may not be allowed by the leaser.