Leasing companies write down the "assets" on their books, ie, the lease portfolio (inventory of all cars on lease), from time to time as the market changes. Therefore they have probably have already recognized the loss on a contractual $18,000 buyout in a $14,000 market on their financials. They took a risk on the residual and lost. So it pays for them to wait until the last minute to cut a deal with you as anything above their carrying value after the write down is profit. And they probably buried the loss in 2001 earnings, so 2002 will look better by comparison.

Their problem is not directly relevant to the new car market as it is to you; you have the choice to put the car back to them and buy or lease a new one. You have another advantage in that interest rates are so low, a new lease makes even more sense as GMAC or Chase can offer a better rate for large lease programs than your local bank can on one loan. But watch out how they get aggresive on termination fees and wear and tear charges.

Cheap money and subsidized lease programs to keep the factories running in an industry with excess capacity - there should be a lot of cheap used cars for years!

posted by 208.212....

• Purchase price at end of lease (Long), PaulD, Tue, 5 Mar 2002 12:57:44
  • Re: Purchase price at end of lease (Long), Jeff, Wed, 6 Mar 2002 15:11:20
  • New GM lease turn in program, Mike G in atl, Wed, 6 Mar 2002 13:54:52
    • Saabs are not included, eseir, Wed, 6 Mar 2002 16:26:05
  • Re: Purchase price at end of lease (Long), BobG, Wed, 6 Mar 2002 12:37:46
    • How much are quoting on a 99 9-3 for a trade in?, eseir, Wed, 6 Mar 2002 13:29:59
      • Re: How much are quoting on a 99 9-3 for a trade in?, BobG, Wed, 6 Mar 2002 13:50:27
        • Re: How much are quoting on a 99 9-3 for a trade in?, eseir, Wed, 6 Mar 2002 16:23:15
  • Much of what you say is true..., Bob M, Wed, 6 Mar 2002 07:25:24
  • My Audi deal, Frank , Tue, 5 Mar 2002 21:43:38
  • Leasing Company Logic, pursang, Tue, 5 Mar 2002 17:58:09 <-- Viewing This Message
    • in regards to turning it in, Eric, Tue, 5 Mar 2002 19:31:41
  • Re: Purchase price at end of lease (Long), Dan Wyman, Tue, 5 Mar 2002 14:31:38
  • Re: Purchase price at end of lease (Long), Wayne Dowers, Tue, 5 Mar 2002 13:56:54
    • Re: Purchase price at end of lease (Long), eseir, Tue, 5 Mar 2002 16:15:05
  • Re: Purchase price at end of lease (Long), Eric, Tue, 5 Mar 2002 13:47:09

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