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Pastimes : Where the GIT's are going -- Ignore unavailable to you. Want to Upgrade?

To: Ken Adams who wrote (141594)	4/25/2007 12:47:28 PM
From: Augustus Gloop	Read Replies (2) \| Respond to of 225578

I hate to say this but I wont by an American car. My experiences with them have turned my off to the extent that I'll only buy Japanese cars. You're friend has a predetermined price he can buy those lease cars for. If you don't know what you're doing with a lease (and most people don't) you can get taken to the cleaners. Too many people become "payment buyers" when the walk into a dealer which is EXACTLY what the dealer wants. Sell a person on a lower lease payment or a 72 month loan and send them out the door with more car than they could otherwise afford. The client is happy to have a cool car and the dealer just waxed them

To: Ken Adams who wrote (141594)	4/25/2007 12:57:05 PM
From: Oral Roberts	Read Replies (1) \| Respond to of 225578

Nobody should lease except a business. You want to pay waaaaaay too much for a car, just go lease one. People don't understand leases and just get reamed. The biggee they don't understand is you are buying the car and there is still a purchase price which is the capitalized cost on your lease. GMAC allowed us to use up to 150% of sticker for capped cost. In other words some people were paying 150% of window sticker for their car via a lease. Insanity. Lease = a purchase price or cap cost - your residual value which is a percentage of the sticker price figured quarterly and published by GMAC. You are financing that difference. So you are looking at a 45000 dollar truck and you want to lease and the dealer jacks the sticker to give you a 60K cap cost. 3 year lease residual for the truck is say 50%. Your lease payment is going to be basically a loan on that difference or a loan of 37,500. You very likely could have bought that truck for close to 37500 with shrewd buying and you would own it at the end of your loan. In my scenario you will pay 37500 and own nothing after 3 years. Insanity. Your cap cost or purchase price on a lease is just as negotiable as a purchase and this is what buyers just do not understand.