Comments on: Will We See the End of Auto Leases in the Next Few Years? http://financefreelancelife.com/2008/08/18/will-we-see-the-end-of-auto-leases-in-the-next-few-years/ Sat, 20 Mar 2010 15:34:03 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: dogatemyfinances http://financefreelancelife.com/2008/08/18/will-we-see-the-end-of-auto-leases-in-the-next-few-years/#comment-23345 dogatemyfinances Mon, 25 Aug 2008 00:35:45 +0000 http://financefreelancelife.com/?p=832#comment-23345 No, residuals will become predictable again. Then leases can again be sold by quoting how much per month, making money for the dealers and the manufacturers again. This is like asking whether mortgages will end because the real estate slump messed up equity assessments. No, residuals will become predictable again. Then leases can again be sold by quoting how much per month, making money for the dealers and the manufacturers again.

This is like asking whether mortgages will end because the real estate slump messed up equity assessments.

]]> By: MoneyGrubbingLawyer http://financefreelancelife.com/2008/08/18/will-we-see-the-end-of-auto-leases-in-the-next-few-years/#comment-23139 MoneyGrubbingLawyer Fri, 22 Aug 2008 19:09:27 +0000 http://financefreelancelife.com/?p=832#comment-23139 Unlike a lot of people in the PF world, I actually like leases. If you want a new car every few years (and that's a huge, glowing red "if"- we all know that this is not a great choice from a purely financial point of view), leasing can sometimes be a more sensible option than purchase financing. I don't think we're going to see the end of auto leases any time soon, but we are likely to see the end of heavily subsizied leases with low money factors and artificially high residual values. Unlike a lot of people in the PF world, I actually like leases. If you want a new car every few years (and that’s a huge, glowing red “if”- we all know that this is not a great choice from a purely financial point of view), leasing can sometimes be a more sensible option than purchase financing.

I don’t think we’re going to see the end of auto leases any time soon, but we are likely to see the end of heavily subsizied leases with low money factors and artificially high residual values.

]]> By: The Friday gathering: Whoosh edition http://financefreelancelife.com/2008/08/18/will-we-see-the-end-of-auto-leases-in-the-next-few-years/#comment-23119 The Friday gathering: Whoosh edition Fri, 22 Aug 2008 11:22:57 +0000 http://financefreelancelife.com/?p=832#comment-23119 [...] Will We See the End of Auto Leases in the Next Few Years? - I sure hope so as they are a huge budget drain. [...] [...] Will We See the End of Auto Leases in the Next Few Years? – I sure hope so as they are a huge budget drain. [...]

]]> By: Kate http://financefreelancelife.com/2008/08/18/will-we-see-the-end-of-auto-leases-in-the-next-few-years/#comment-22942 Kate Wed, 20 Aug 2008 05:00:43 +0000 http://financefreelancelife.com/?p=832#comment-22942 Interesting and thought provoking post. You would think the changes in our car buying habits would be even more drastic then they have been. But maybe there will be a trickle-down effect at some point. Personally, my husband, who drives at least 2500 miles/month just made the switch to a Chevy Aveo which gets 40 mpg. Even with a new monthly car payment, we are actually saving money each month. His old car (a '94 Buick Century) was getting only 15 mpg. And at that, it could only hold a 1/3 of a tank of gas without leaking. The repairs would have cost more than the car was worth. So, it was obviously a no-brainer for us. But, I really think it is worth looking into for everyone. Interesting and thought provoking post. You would think the changes in our car buying habits would be even more drastic then they have been. But maybe there will be a trickle-down effect at some point.

Personally, my husband, who drives at least 2500 miles/month just made the switch to a Chevy Aveo which gets 40 mpg. Even with a new monthly car payment, we are actually saving money each month. His old car (a ‘94 Buick Century) was getting only 15 mpg. And at that, it could only hold a 1/3 of a tank of gas without leaking. The repairs would have cost more than the car was worth. So, it was obviously a no-brainer for us. But, I really think it is worth looking into for everyone.

]]> By: Frugal Babe http://financefreelancelife.com/2008/08/18/will-we-see-the-end-of-auto-leases-in-the-next-few-years/#comment-22906 Frugal Babe Tue, 19 Aug 2008 17:02:20 +0000 http://financefreelancelife.com/?p=832#comment-22906 I'm hopeful that the current economic state will give people pause when it comes to cars in general. That we'll come to realize that a car is only useful for getting from A to B, and that there are often other means of doing so (walking, biking, public transit...) An end to auto leases - which often encourage people to get a lot more vehicle than they would otherwise buy - would be a good start. I’m hopeful that the current economic state will give people pause when it comes to cars in general. That we’ll come to realize that a car is only useful for getting from A to B, and that there are often other means of doing so (walking, biking, public transit…) An end to auto leases – which often encourage people to get a lot more vehicle than they would otherwise buy – would be a good start.

]]> By: Funny about Money http://financefreelancelife.com/2008/08/18/will-we-see-the-end-of-auto-leases-in-the-next-few-years/#comment-22853 Funny about Money Mon, 18 Aug 2008 23:08:33 +0000 http://financefreelancelife.com/?p=832#comment-22853 Leases are useful (I suppose) for people who use cars in their businesses: as I understand it (maybe wrongly?), 100% of the cost of the lease is deductible, and you're not having to dork around with calculating depreciation. But one thing I've <i>never</i> understood is why anyone would lease a personal car. What a rip! People seem to do it all the time, and in my experience, the dumber they are about money they bigger and more ridiculous the leased car. Cars are rips all the way around, though, between their high cost and the breathtaking depreciation rates. Wouldn't it be nice to be able to do without them? I mean...without having to get a horse, which costs as much as a car to maintain. Leases are useful (I suppose) for people who use cars in their businesses: as I understand it (maybe wrongly?), 100% of the cost of the lease is deductible, and you’re not having to dork around with calculating depreciation.

But one thing I’ve never understood is why anyone would lease a personal car. What a rip! People seem to do it all the time, and in my experience, the dumber they are about money they bigger and more ridiculous the leased car.

Cars are rips all the way around, though, between their high cost and the breathtaking depreciation rates. Wouldn’t it be nice to be able to do without them? I mean…without having to get a horse, which costs as much as a car to maintain.

]]> By: Mike http://financefreelancelife.com/2008/08/18/will-we-see-the-end-of-auto-leases-in-the-next-few-years/#comment-22839 Mike Mon, 18 Aug 2008 19:06:28 +0000 http://financefreelancelife.com/?p=832#comment-22839 I have always been against leases for the typical reasons, but looking at things closely there are times when it makes sense. I've gotten in the habit of paying cash for my last few cars, but have found that my money might have been put to better use than purchasing something that depreciates as quickly as a car - even a used one. My results were included in the following post: http://blog.lendingclub.com/2008/07/24/financial-transaction-post-mortem/ I have always been against leases for the typical reasons, but looking at things closely there are times when it makes sense. I’ve gotten in the habit of paying cash for my last few cars, but have found that my money might have been put to better use than purchasing something that depreciates as quickly as a car – even a used one. My results were included in the following post: http://blog.lendingclub.com/2008/07/24/financial-transaction-post-mortem/

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