We are never going to Lease Vehicles again so said the big Auto Makers just a few years ago.

a reply to: Iwinder

The big mistake that these auto companies made was passing the leasing option over to the everyday consumer. They should have just stuck with it being for business owners only.

But greed got the best of them.

Needless to say, now we the peons are paying the piper for their bad business decisions.

Too big to fail.

originally posted by: CranialSponge
Needless to say, now we the peons are paying the piper for their bad business decisions.

Too big to fail.

Well, no offense, but maybe you, the peons.

Everything i own is bought and paid for.

originally posted by: TDawgRex
a reply to: Iwinder

I never understood leasing a vehicle myself. Who the hell would want to pay a monthly payment yet never own the vehicle? Those people are idiots, plain and simple. Wheres the pay off!? There is none!

I don't get it either but to each his own I guess, It to me is really money out the window for the luxury of driving a nice car and being in perpetual debt for life.

Thanks for adding into the mix here TDawgRex

Regards, Iwinder

originally posted by: CranialSponge
a reply to: Iwinder

The big mistake that these auto companies made was passing the leasing option over to the everyday consumer. They should have just stuck with it being for business owners only.

But greed got the best of them.

Needless to say, now we the peons are paying the piper for their bad business decisions.

Too big to fail.

Agreed that is all I can say
Regards, Iwinder

a reply to: TDawgRex

If you're a taxpayer, you're a peon.

It's we the taxpayers bailing out these idiots.

Well, no offense, but maybe you, the peons. Everything i own is bought and paid for.

a reply to: TDawgRex

Ditto for us here, and it's a very good feeling and heck we don't dread the mail delivery either for lack of funds to pay the bills:-)

Regards, Iwinder

originally posted by: CranialSponge
a reply to: TDawgRex

If you're a taxpayer, you're a peon.

It's we the taxpayers bailing out these idiots.

Maybe so, but I still have enough to set aside to take care of me and mine and then some to boot. Not everything goes to them after all. And I don't mind if my money helps those in need, I just have a problem when it doesn't.

I bought my car brand new, and plan on keeping it, but I don't think people who lease are idiots. My car holds it's value insanely well, so I figured I might as well go ahead and pay a bit more and get exactly what I wanted and also know exactly how it was treated/maintained (notorious for being driven hard). Otherwise, I would have gone the used route and saved a bunch.

Let's assume we're comparing people that don't have the cash up front to purchase a new vehicle, but want a new vehicle.

When you lease, you lease the car at the price it will be worth after the depreciation caused by mileage and age. This means that you're effectively borrowing a lot less. So if you buy a brand new $40k car, you're borrowing $40k. If you lease it, you're probably borrowing substantially less, usually 3 years and 36k miles worth of depreciation.

New cars will usually have a bumper to bumper warranty for at least the amount of time as the lease, so you don't have to worry about that either, and after that first three years you aren't going to have to pay for the more expensive services that crop up. While someone else is still paying out the ass, and then paying even more for certain services, you're in a brand new car you don't have to worry about.

I think most loans are 3-5 years. In that amount of time, you will have obviously payed much more for a loan than a lease. This is both difficult for people who don't have a high monthly income, and a pain in the ass for people who do but want to constantly upgrade every 3-5 years. If you have that kind of income, but not enough to purchase the car outright, or know that you will want a new one 3 years from now, leasing makes a ton of sense. If you can't afford the higher payments and downpayment of a loan, leasing makes sense.

Leasing has drawbacks, like the amount of miles you can put on the car annually before insane penalties, but if you know how many miles you'll be driving, that's not really a big deal. It's true that you're not actually going to have anything to show for the money you put in to lease, but at the same time you're not going to be losing a ton after a certain amount of time, and if you just outright can't afford a loan you'll be able to save more, or at least have a car.

I wouldn't want to lease a car, because I like to mess with my cars. I'm doubting many dealerships would actually approve all warranty claims on my car, even though I'm about 2 years and under 15k miles. I think I "voided" my warranty after 4 months of ownership.

My opinion? Do what you want, it's all a wash unless you're like me and fall in love with a certain vehicle and want to keep it forever, maintain it and buy something proven to last. It's going to take me awhile to see a return on my investment, but I'll be smiling every day and mile until I do.

originally posted by: Domo1

Leasing has drawbacks, like the amount of miles you can put on the car annually before insane penalties, but if you know how many miles you'll be driving, that's not really a big deal.

I have had the dealership take back cars that were over their limit without issue and not rolling it into the next lease The only stipulation is that we were leasing another vehicle from them.

a reply to: TDawgRex

Maybe so, but I still have enough to set aside to take care of me and mine and then some to boot. Not everything goes to them after all. And I don't mind if my money helps those in need, I just have a problem when it doesn't.

I'm talking about bailing out auto companies and banks. We the taxpayers are having to bail out these "too big to fail" idiots because they continue to make bad business decisions.

Not sure why you misinterpreted that I was talking about the little people.

a reply to: CranialSponge

I didn't misinterpret a thing. I can read plain English, though I can't read minds. My reply to your post was in perfect context to what you said. No where did you refer to "To Big to Fail."

Let's assume we're comparing people that don't have the cash up front to purchase a new vehicle, but want a new vehicle.

a reply to: Domo1

That my friend is the problem, people want something now and new and the dealers want you in a new car. It's a long lost word in the financial books but it is called "Restraint"

In the link I provided in the OP the car companies clearly state it was a big mistake and we won't repeat it. It sure didn't take them long to get back to their old ways did it?

The article in the Link I provided is dated 2012 so it sure didn't take them long to get back to leasing after going into bankruptcy or insolvent if you wish.
All the while they let workers go and closed plants and divisions of plants. I Rue the day GM toasted Pontiac the sportiest and sharpest looking cars they ever made gone because they got greedy.

Now instead of a Grand-pix that looks cool and is supercharged to go like hell we get stuck with vehicles like the Chevy Cruise or worse the spark. No power no good looks like Pontiac had but yet here we are stuck in garbage land.

My whole point of this thread is what sunk GM and Chrysler was the leasing and they got right back to it as soon as their boat was floating. The tax payers paid for this error and the Car Companies claimed never again will we be so stupid.

Lo and Behold they are more dunce than we thought or our generous bail outs were a sign to them of better things to come?

Thanks very much for you long and well thought out post.
Regards, Iwinder

Just my opinion as I used to sell cars, I think leasing would fit most Americans more than buying. Now this is just taking my experience its not fact. Most people who came to our dealership who had bought their last vehicle, still hadnt paid it off, they were typicall 2-4 years into the loan, they are now trading the car in. So in theory all they did was lease the vehicle, but they were now responsible for the whole value of the car, were as leasing you only pay for the depreciation.

I am avid car enthusiast, so I buy used cause i cant leave anything alone, but if you never mod anything, I would suggest leasing. Again though, this is all my opinion.

lwinder - My wife owns a "Cruze", and we love it. 47 mpg on the highway... and around 28-32 in the city. Its a cool car.

lwinder - My wife owns a "Cruze", and we love it. 47 mpg on the highway... and around 28-32 in the city. Its a cool car.

a reply to: SullivanBlack

Glad you love your Cruze and I will race you for pinks with the Grand Prix GTP supercharged :-)
Thanks for adding to this thread and your personal experience is much appreciated.

Regards, Iwinder

a reply to: Iwinder

It's no surprise that these car companies would backpeddle on what they swore up and down they would never do again.

There's a huge demand for everyday consumer vehicle leasing. People want something shiny and new, and are willing to beg, borrow, and steal to get what they want... just because.

For the folks that can afford it, great. Not so great for the ones who can't and are unable to resist the temptation, thus ending up in a vicious cycle that never ends.

But let's face it, the consumer market is all about selling icecubes to eskimos. Sell stuff to people that neither need it, nor can afford it.

And the car companies take comfort in knowing that they'll get bailed out time and time again... Bailouts coming from the wallets of the same taxpayers who have to lease from these skallywags because they don't have the monies to purchase.

Irony, crony capitalism, and the sick-cycle carousel... all rolled up in one.

a reply to: CranialSponge

For the folks that can afford it, great. Not so great for the ones who can't and are unable to resist the temptation, thus ending up in a vicious cycle that never ends. But let's face it, the consumer market is all about selling icecubes to eskimos. Sell stuff to people that neither need it, nor can afford it.

Nice post and well said, I really do remember both GM and Chrysler swearing they would never again touch this poison pill. I guess living within an hours drive of Detroit is the reason I pay attention the the car companies and the ads they run now.
Also the "Queen Mobile" (YogaGinns) might be coming up for replacement soon and it will be replaced with another used car, and there will be no new purchase or lease involved.
We usually try to find something about two or three years old but not a rental or a leaser, both of those have major draw backs as in being driven hard with little maintenance.

In Ontario you get used car package and it lists how many times this car changed hands starting with the dealership down through all the private owners. It's very handy and gives you a good idea of the history of the vehicle.

At least if the big car companies go belly up again mostly due to Leasing this thread should help explain to the next generation of tax payers where the heck their money is going to.
Thanks for the post CS
Regards, Iwinder