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How can you say that
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Posted by Lou (more from Lou) on Wed, 14 Aug 2002 12:02:32 Share Post by Email
In Reply to: Lease - don't buy, KP, Wed, 14 Aug 2002 08:55:17
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Without knowing things like the miles to be driven per year, and the duration that one plans on keeping the car? I have leased twice, and both times have had to buy the car from the leasing company in order to resell it privately as a method of not getting hammered by end of lease charges.
As for maintenance during the lease, it's a push. You must have all manufacturer's scheduled maintenance done per the warranty book during the lease. If you turn in your leased car with worn tires, you WILL be assesed a charge to pro rate them to the wear level that is specified in the lease. Little rip in the upholstery or stains in the carpet that a private buyer might accept as part of it being a used car? No, the leasing company has a very specific document that outlines what is considered normal wear and tear, and what is chargable under the terms of the lease. Try reading the boilerplate on a lease sometime. They have you covered on every little thing that could possibly go wrong. If you turn your leased car into the same dealer you got it from and are leasing again from them, you might have a little leverage, but if the car is being disposed of at auction by the leasing company, they can and will throw the book at you. The only car that I would ever consider leasing is one that I felt would be largely unsellable at the lease end, for exapmle, an Oldsmobile now that the brand is being discontinued. Saab's residuals have been weak for the market segment that they compete in, but they are addressing this within the company, and it should go up, if only a few percentage points. Until it does, I would prefer to take my chances on a purchase.

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