Reader Question My husband wants to lease a new Mercedes, not buy it like I am used to doing. Should we consider leasing this type of high end luxury vehicle or should we just buy it out right like we are used to doing?
Rose,
NYC NY
Hey Rose, I was shocked to find out that approximately 75% of luxury cars are leased. After a temporary slowdown during the last few years because of aggressive zero-percent loan programs, leasing is once again growing in popularity.
Approximately 75% of luxury cars are leased. After a temporary slowdown during the last few years because of aggressive zero-percent loan programs, leasing is once again growing in popularity.
You might want to talk to your tax adviser about weather leasing or buying is in your best interest…but leasing is not a bad idea for the type of high end vehicle you are looking into. Best of luck
Don,
San Jose, CA
April 16th, 2008
Reader Question When did auto leasing become so popular? It seems every TV advertisment is for car leasing not car buying? What happened to the old car buying days?
Jerry,
Dallas,TX
Perhaps as recently as 8 years ago, most auto consumers had never really heard nor considered leasing a viable options for their auto financing.
Today, leasing accounts for nearly 35% of total auto sales in America (that?s more than double that of the previous decade)! Perhaps, the most important thing to keep in mind is experience. In fact, that may be why you are seeking professional help instead of trying to restore your own muscle car.
Perhaps more importantly, this angle helps to solve the incentive mess that manufacturers dug for themselves with 0% financing and ever-spiraling rebate deals. They started in the 1980s with Lee Iacocca’s “buy a car, get a check” $50 rebate campaign.
April 16th, 2008
Reader Question Can you tell me what is GM’s Smart Buy and Smart Lease program consists of?
Shirley,
Houston, TX
Hi Shirley, does this help explain their programs to you?
SmartLease Plus expands the lease to help you avoid monthly payments (contact GMAC for more information). And the Low Mileage Lease benefits those who drive under 12,000 miles per year with lower lease payments.
Smart Buy is also a program that allows you to eventually own your vehicle, however monthly payments are typically lower than those of traditional retail financing.
April 16th, 2008
Reader Question: Hi, can anyone please explain the whole auto leasing concept to me in laymans terms?
Thanks,
Tom, Atlanta GA
Hey there Tom,
Car leasing (auto leasing) is essentially a way of obtaining a vehicle for a set period of time. Leasing is not renting and renting is not leasing, nor is it financing.
Auto leasing is a popular option for people who want to keep changing their cars every few years without having to bother about selling old ones or buying new ones.
Most people find leasing from a consumer friendly company convenient, time saving and efficient. Auto leasing is a great option for companies since the payment is 100% tax deductible. Its also a great way to drive a new car every two years so long as you don’t go over mileage limits.
April 16th, 2008
Are you considering an auto lease deal over conventional buying?
Auto leasing is gaining popularity among consumers in the US because it offers them a chance to drive the cars they want, often better cars than they can afford to buy.
Low monthly payments are a big attraction of auto leasing. Auto leasing is more popular than ever – leasing has grown ten times since the mid-eighties. In fact, 29-36% of the 15 million-plus cars sold in the United States are leased.
Auto leasing is increasingly popular among money conscious consumers. While only 12 percent of total passenger cars delivered in 1986 were leased, 24 percent of 1992 deliveries were leased, and 28 percent of 1997 deliveries are expected to be leased. That number is expected to double in the next 5 years in the U.S. alone.
April 16th, 2008
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