Date: Fri, 25 Oct 2002 07:18:24 -0400 From: Bob <uctraingNOSPAMnopsamanet.com> Subject: Re: lease up-what to change to?
On 25 Oct 2002 03:07:44 GMT, krissfamnopsamcom (KRISSFAM) wrote: >how does one build up equity in a lease? the residual seems way above the >wholesale price of the car...isn't that how the lease rate is brought down-high >residuals? You are correct, you can't build up equity in a lease. The best you hope for is that the value of the car at the end of the lease is such that it's worth buying the car. Leases don't make sense for (almost) anyone except the leasing company. But, keep in mind that auto salesman learned many years ago that selling an item with a price that exceeds most people's quarterly income was a no-go. So, instead they sell the "monthly payment". When they discovered that they could lower that monthly payment by leasing cars, they started pushing leases big time. With a lease, not only do they "get you in the car" cheaper, but they usually get you back looking for another car in three years. It's an auto salesman's dream. If you do the numbers of lease vs. buy, the lease will not make financial sense to you _unless_ you are very good with investments and can make more money from investing the difference in the cost of lease vs. purchase. Bob
