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Usual paradigms skewed by Saab deals...... Posted by Mike Lynch [Email]  (#81) [Profile/Gallery]
(more from Mike Lynch) on Thu, 22 Aug 2002 19:15:41
In Reply to: Leasing new versus purchasing used?, Pat Mc, Wed, 21 Aug 2002 10:45:12 Members do not see ads below this line. - Help Keep This Site Online - Signup |
Saab breaks the mold. Try explaining to a customer why 0% isn't the cheapest way to buy a Saab. Answer: If you have a $6,000 incentive on a Saab if you don't use the 0%, and the finance charge at market rates is only $3,000ish ($36,000 at 7%ish for 36 mos.) then reduce the balance to $30,000 and pay the market rate and you'll have a lower payment by about $100 a month! $36,000 x 36mos @ 0% = $1,000 vs. $30,000 x 36mos @ 7%ish = $900. Strange, uniquely Saab, but true.
Normally whether you lease or purchase it cost the same to own a car for the same period of time. Your lease payments are lower, but you don't gain equity. Add up what you save in lease payments and it covers the cost of buying the car at end of the lease usually. The other considerations for leasing is the future value of money, the notion of not putting too much cash in a depreciating asset, investing your money in things that at least have a chance of growing. And a lease screws the government out of their sales tax. You only pay taxes on the payments, not the entire car as when you purchase. That could be the best reason to lease all by itself!
With Saab you get a big incentive, almost the same or almost as much depending on the model, AND you get a subvented lease rate of 2%ish or less. So the financing is either or. Saab leasing combines both. Which is why I recommend the Saab lease even if you plan on keeping the car longer than the lease. It saves you most of the lease or finance charge during the lease period. That's an extra couple of grand over the lease term, which is either a lot or a little depending on you. Sure you have to buy your own car at the end of the lease, but isn't saving a couple of grand in finance/lease charges worth the hassle? Leasing and then purchasing just extends the term you're making payments, if you indeed need to make payments on these amounts.
I know many people who pay cash just so they don't have to hassle with slicing and dicing all the payment issues just to save a couple of thousand over 3 or 4 years. But if you're payment conscious, the Saab lease gets you the big incentives/rebates and the low rate in one package. And if gives you the option of NOT buying the car at the end of the lease too.
posted by 207.158.49...
, Thu, 22 Aug 2002 19:15:41 <-- Viewing This Message
, Wed, 21 Aug 2002 12:11:31, Thu, 22 Aug 2002 19:19:07
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