I think leasing might be dead next month...

i just leased my first truck an f150.
i normally only keep a car/truck for 2-3 years any ways, the payments are less and mileage isn't much of an issue for me i only live a few miles from work
 
NOSWS6 said:
I don't know all the details yet, but a lot of us saw this coming. I mean c'mon, driving a $40K truck or car for $200 a month just doesn't make much sense. I know, that being at a Chrysler store, it's something the corporation did to help us move all these units off our lots. Well it looks like it finally caught up to our banks, who are the ones responsible for the loss your car takes at the end of your lease cycle, since it is in fact the banks vehicle.
Our store sells around 600 cars a month. About 90% of those sales are leased. That's kinda scary. They are going to have to get real creative with the financing to reach a comfortable payment for most people. On the bright side, business should be VERY good until next friday. I've always leased at least one of my cars. What are your guys thoughts?

-Francis
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Francis,

I'd be alittle worried if I were in a Chrysler store myself. If they kill leasing they will KILL this market completely. How many employees do you have that buy a new car? They all lease them. It's going to become just like the housing market :eek:

xxljrfan said:
id rather have a shitty mopar than a good ford
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Your wish has been granted. Keep buying those Mopars :D
 
topless67 said:
2) Lease FTL....just like renting...I refuse to pay on something I don't own and the mileage restrictions would kill me.
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Lets put that into real property for a second. If you BOUGHT a house in the last 5 years, it is worth Less today than what you bought it for, so you are UPSIDE DOWN. and stuck.

NOW, if you lease a car, you simply turn it in ans walk away owing nothing.
 
so what are the incentives on a 2008 F150 nowadays?

is Ford paying people to drive them off the lot yet?

I went to HOLZER ford last night looking at vehicles for the g/f and they had a crap load of 2008 F150's

Heck the dearborn plant is shut down until September so there haven't been ANY '09 F150's from there.
 
wikdsvt said:
Lets put that into real property for a second. If you BOUGHT a house in the last 5 years, it is worth Less today than what you bought it for, so you are UPSIDE DOWN. and stuck.

NOW, if you lease a car, you simply turn it in ans walk away owing nothing.
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Depending on the housing market- not every home is losing value (or so I thought? :shrug:). Unfortunately...in this area that would be the case. That's why my parents are stuck in MI.
 
91trunk said:
Francis,

I'd be alittle worried if I were in a Chrysler store myself. If they kill leasing they will KILL this market completely. How many employees do you have that buy a new car? They all lease them. It's going to become just like the housing market :eek:



Your wish has been granted. Keep buying those Mopars :D
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From what I understand most Manufactures will be trying to get away from leasing.
I heard ford credit lost over 15 million in the past quarter due to lease turn-ins????

Ford took a $5.3-billion charge to write down the value of its plants that build pickups and S.U.V.’s. Ford Credit, its auto loan arm, took a $2.1 billion write-down to cover the shrinking value of its lease portfolio.

The company said that during the quarter, auction values for Ford vehicles coming off 24-month leases had dropped an average of $2,700 from a year earlier. The value of vehicles with 36-month leases fell about $2,400.

The drop-offs were directly tied to the dwindling resale value of pickups and S.U.V.’s coming off lease, said Brenda Hines, a spokeswoman for Ford Credit.
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Yeah

Dodge salesman just called and told me that after Thursday they won't be leasing through Chrysler financial anymore. :pow:
 
VanFaasenC said:
From what I understand most Manufactures will be trying to get away from leasing.
I heard ford credit lost over 15 million in the past quarter due to lease turn-ins????
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They have been saying that for years. I can't see it happening to Ford or GM. Chrysler maybe. Honda,Toyota, etc are all leasing these days.
 
If leasing is a viable (profitable) proposition then other financial institutions will step in and fill the gap from CFC's leasing departure (assuming of course that this report is valid).

On a positive note, eliminating discounted leases may shore up residual values (as will reducing capacity).

I'd be shocked if 90% of sales are leases outside of this area .. I'd suspect that number is so high because of all the employing lease deals..
 
FROM AUTOBEAT DAILY today

FORD POSTS RECORD $8.7 BILLION LOSS….Ford
Motor Co. reported a net loss of $8.7 billion for the second
quarter of 2008—its worst quarter ever—vs. a profit of $750
million a year earlier.
The loss includes $8 billion in pre-tax special charges,
including $5.3 billion to write off factory assets. Also, Ford
Motor Credit Co. took a $2.1 billion writedown to reflect
plunging resale values of leased SUVs and light trucks.And also this:

OEMs FACE BIG LOSSES ON LEASED GAS-GUZZLERS.
The captive finance arms of automakers are facing huge
losses as leases expire on millions of SUVs, pickup trucks
and luxury cars, reports Business Week.
The magazine cites CNW Marketing Research,
which figures the auto industry will lose $4.7 billion on
off-lease SUVs alone this year and $10 billion more
through 2010.
Because resale values of such vehicles have plummeted,
auto lenders will have to unload them for much
less than the value at which they were booked several
years ago.
Yesterday Ford Motor Co. reported a $2.1 billion pretax
charge for just such losses at its finance arm in the
second quarter of this year. BMW AG took nearly a $400
million charge for losses on off-lease vehicles in the first
quarter, BW notes.
The trend also has hit the market for securities
backed by auto leases. Investors who own such securities
are experiencing losses. And Wells Fargo Bank will
stop buying auto leases from carmakers at the end of this
month, the magazine says.


It was only a matter of time.....the same thing happened on a smaller scale maybe 8-10 years ago when I was at a dealership......Residual values were overestimated and the banks were taking a loss on lease turn-ins......the next model year lease prices were up $150 -$200 per car.

Matt
 
I've been wondering about this ever since I started leasing, around 1999 I think. I've leased 6 or 7 cars since then, and not ONE of them has been actually worth the residual value assigned to it. I've always asked the dealerships how it works, because I knew that SOMEONE had to be getting screwed. I'm amazed it lasted this long, unless there's something I'm missing?

And to everyone who thought leasing was stupid, I'm completely baffled as to why you would think that. It's only stupid if you want to keep your car for a long time anyhow, or if you drive too much. It's a GREAT idea if you want a new car every couple years anyhow, which I do.
 
Fryguy302 said:
I've been wondering about this ever since I started leasing, around 1999 I think. I've leased 6 or 7 cars since then, and not ONE of them has been actually worth the residual value assigned to it. I've always asked the dealerships how it works, because I knew that SOMEONE had to be getting screwed. I'm amazed it lasted this long, unless there's something I'm missing?

And to everyone who thought leasing was stupid, I'm completely baffled as to why you would think that. It's only stupid if you want to keep your car for a long time anyhow, or if you drive too much. It's a GREAT idea if you want a new car every couple years anyhow, which I do.
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Yup, I had an 06 GTO, bought it new, drove it for a year then sold it...lost my ass. It probably cost me close to 8k to drive it for a year when you factor in selling price, taxes, and money i had to fork over that i lost when i sold it...its much cheaper for me to have a 2 year lease on an f150
 
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