Is this another dealership marketing gimmick? Can we sell leased vehicles? (luxury, 2013)
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You have to remember though, the bank assumes more risk with a lease. It’s one of those things people forget about that contributed to Chrysler’s demise pre bailout. They were famous for leasing Jeep Grand Cherokees cheaply with an overly optimistic residual value. Dealers would flip them back to the bank in and follow the truck to buy them back from the auction for $4K less than the residual.
That was 30 years ago, when leasing was something done by one sweaty balding guy in the back of the fleet office. The rise of leasing as a primary consumer tool has turned it into a game with house odds no one should be stupid enough to play against.
I have a leased Cadillac. It has another year or so left on it till expiration. Last week I was forwarded a random email chain from the sales department of my dealership asking me to call them asap because they have low pre-owned inventory of my vehicle. Basically, what I understood from their email was that my make and model was in demand in pre-owned them without doing my due diligence.
My neighbor OWNS his vehicle and he still gets these calls/emails.
Some dealerships just want to sell or lease a new vehicle to you. Nothing more nothing less.
Met someone who did receive this type of communication from the new car dealer. Owned truck. He had a 5 year loan.
His 3 year old truck with 15,000 miles on it. They told him that they could "lower" his payments with a new truck. He fell for it and got a new truck. His payment did go down a little. But when asked HOW LONG his payments were (how many months added/total) - he didn't have a clue.
When asked HOW MUCH he paid for the new truck - he didn't have a clue.
"Low on inventory". Usually not. As said, just a way to get you in the door. I got a call from the dealer the other day wanting my 2014 F150 because its " inventory of used trucks is low" it " had someone sitting here that wants it and they'll put me in a new one for the same payment I had "
No it isn't and no they don't. I just told the saleswoman that I'd looked at their new inventory the other day, I actually had, and saw nothing I'd want. She then mentioned they had some new Rangers. I told her especially not a Ranger.
Anything to do with leasing is a scam. Unless you are leasing for business or to offset your company's car allowance, leasing is for suckers.
I’ve leased my last 4 cars. Always $0 down and under $300/month payment. That’s calculates to under $11k per 36 month lease. This includes free oil changes and tire rotations and my car is always under warranty. I always have the latest safety tech and technology and dont have to worry about my “beater” making it to my destination. If an issue did arise, I simply call my dealer and they pick up my vehicle and drop off a loaner.
I have a leased Cadillac. It has another year or so left on it till expiration. Last week I was forwarded a random email chain from the sales department of my dealership asking me to call them asap because they have low pre-owned inventory of my vehicle. Basically, what I understood from their email was that my make and model was in demand in pre-owned dept and they have a shortage of it at the dealership It had a link which asked for my phone number. I didnt enter my phone number but since I have leased the vehicle from the dealership, they followed up next day with phone calls and left a voicemail.
I have leased several vehicles in the past and after 2 yrs or so I start getting offers to return or sell the vehicle or upgrade or something similar. I wanted to know if someone knew what happens if they followed through on this process. I have no exceeded the allocated miles and up to date on the service.
1) Can someone sell/return their car before the lease term ends. I am not sure if a vehicle could be sold when its on lease but why would a dealership ask me to stop by when they know I have another year or so left on the vehicle?
2) If they buy the vehicle do they just pay off the remaining balance of my vehicle (lease payment X # of months left)? Am I free to walk away or do I have an obligation to lease another vehicle from them.
I am not good in working with sales and I wanted to know if anyone had any experience with such transaction. I didn't want to call them without doing my due diligence.
Thanks in advance.
You are not doing your due diligence unless you thoroughly read everything before you sign it, including double checking every number (with and without the $ symbol in front!). If they mislead you verbally but the written contract spells it out, legally, it is your responsibility.
You, or a savvy friend, must know exactly what you will owe, otherwise you are trusting the dealership to have your best interest at heart, which happens maybe 0.1% of the time if you are lucky.
That was 30 years ago, when leasing was something done by one sweaty balding guy in the back of the fleet office. The rise of leasing as a primary consumer tool has turned it into a game with house odds no one should be stupid enough to play against.
I'm not so sure. You're right, the odds are in the houses favor, and its financially unwise unless you routinely plan to swap cars every 2-3 years. But the whole point of a lease as a consumer tool is a lower payment. That in turn means a high residual value, and/or a money factor that's low. If you have too high a residual value, you take a bath at lease end. Conversely, there is the opportunity cost of the $25,000 in capital tied up, which also needs to be considered. I'm just saying that the dealers don't make more money leasing you the car vs buying it (unless a cash or 3rd party bank purchase.)
This has been discussed to death in other threads and I don't really want to repeat the process. The short take is that when analyzed from one step back, there is almost nothing about automotive leasing that benefits the consumer, and leasing is a good option only for businesses that can write off the total cost and a very small niche of people in somewhat peculiar financial conditions.
Presenting it as a good thing because of the low payments is (or should be) a huge red flag; there are very few consumer situations where lower payments represent any kind of best deal. For one thing, those "lower payments" often come after a whopping initial payment higher than most purchase initials.
Focusing on the front-end costs also ignore the very strict return rules, which seem to get tighter and more rigidly enforced every year - over mileage is extremely expensive, and judgment of "reasonable wear and tear" can be draconian. (Another thread mentioned a lease agent using a tool to search out non-factory paint, for example.)
All of which completely ignores why the auto industry so dearly loves their lease programs, and none of the motivations there serve consumer interests; a good part of them verge on (or barge into) predatory. Nothing good for consumers can come from that sales perspective. I present the attempt to churn the OP's business as Exhibit A.
I refer you to any of a dozen very long threads on the topic within the last six months.
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