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Re: Lease spreadsheet update Posted by Adam [Email]  (#344) [Profile/Gallery]
(more from Adam) on Sun, 3 Jun 2001 19:50:33
In Reply to: Re: Lease spreadsheet update, Marc, Sun, 3 Jun 2001 11:50:42 Members do not see ads below this line. - Help Keep This Site Online - Signup |
That spreadsheet is very helpful! Thanks!
Also, gap insurance, as previously stated, is insurance that covers the difference between the residual and what the car is actually worth on the used car market should it get stolen or totalled by an insurance company after an accident. Most closed-end leases include gap insurance. Not all do however so it is best to check with the dealer and make sure it is in writing.
I'm not sure how Saab Financial or Chase handles their leases but open-ended leases are the type where the lessee is responsible for making up the difference if the vehicle is worth less than the residual (as forecasted at lease inception) at the end of the lease. This "fee" would be in addition to excess wear-and-tear, mileage, etc. I have read several articles about open-end leasing, the horror stories that go along with it - from what I can tell it is a very risky proposition. Many experts are of the opinion that no one should consider one of these types of leases. As far as I know they are uncommon now with the exception of fleet leases, etc. (as in when a large corporation leases fleet/sales vehicle from a major manufacturer such as GM or Ford).
Closed-end leasing is a more secure way to go. The residual is predicted at lease inception. If the vehicle is worth less than that when it is turned in, the lessor takes the hit for it. The lessee is not responsible for making up the difference in that situation. All fees such as wear-and-tear, excess mileage, etc. still apply. As I mentioned, these often include gap insurance as well.
, Mon, 4 Jun 2001 10:16:05, Sun, 3 Jun 2001 19:50:33 <-- Viewing This Message
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