Category: Lease

By on June 12, 2017

Car dealership, Image: VadimGuzhva/Bigstock.com

Years back, after the desire to purchase one particularly fetching model became too great, you walked into the dealership, marched right over to the salesman’s cubbyhole, and signed over several years’ worth of payments on your ride du jour. Bliss ensued.

Unfortunately, come trade-in time, your once-desirable ride isn’t even worth the amount left owing. You’re in negative equity, pardner. Still, buyers faced with this situation have a number of options at their disposal.

Thanks to a recent study of new car buyers, we now know exactly how owners of low-value trade-ins chose to deal with their unexpected debt. Read More >

By on June 7, 2017

2017 Toyota Camry SE - Image: Toyota“Stepping up to a midsize is basically a no-brainer for buyers at this point,” CarsDirect’s senior price analyst Alex Bernstein tells TTAC.

With demand for midsize sedans drying up, deals on aging models are warming up.

Now in its sixth model year, the 2017 Volkswagen Passat 1.8T S — the entry-level Passat — is available in June for a 36-month lease at $189 per month and $1,999 due at signing.

The 2017 Honda Accord, a new version of which is due later this year, is also available in June in basic LX trim on the same terms.

Meanwhile, the mid-grade 2017 Toyota Camry SE 2.5, set to be replaced in the coming months by an all-new model, is likewise available in June for $189 per month with $1,999 down over 36 months.

“This is about as cheap as lease deals have ever been on these midsize sedans,” Bernstein says. But it actually gets even cheaper, marginally cheaper, according to CarsDirect’s examination of 500 lease deals. Read More >

By on March 29, 2017

keys car sale

A third of all subprime car loans are now being categorized into the ominous-sounding “deep subprime” group. The designation has become progressively more inclusive since America clawed its way out of the recession and now accounts for 32.5 percent of all high-risk loans — up from just 5.1 percent in 2010.

While consumers have fallen behind on most subprime auto loans, the deep classification is responsible for the most serious cases of nonpayment. Delinquencies surpassing 60-day periods have tripled since 2012 and indicate little sign of stabilizing.  Read More >

By on March 3, 2017

Chevrolet Tahoe overlooking a city

As urban populations grow and analysts continue to predict dwindling car ownership, alternatives have sprung up and automakers are gradually getting in on that sweet car-sharing action. Currently active in 17 North American cities, General Motors’ hourly ride-sharing unit Maven has been building slowly.

GM is now expanding Maven to include long-term rentals which, come to think of it, sounds identical to what it was doing with its Book by Cadillac premium subscription service. While the Caddy offering is intended to be a monthly subscription serving as an alternative to normal vehicle ownership, nothing is really stopping customers from using “Maven Reserve” in a similar manner.

Also similar is the pricing. While the special Maven Reserve vehicles don’t yet encompass all GM’s fleet, a Chevrolet Tahoe runs $1,500 for 28 days, which is identical to the subscription fee for Cadillac Book, which also includes curbside car delivery and mid-month vehicle swapping.

In essence, GM is allowing you to have simultaneous access to a CTS-V and Escalade or a Tahoe for the same amount of money.  Read More >

By on February 9, 2017

Ford Focus Electric

The Ford Focus Electric is one of the most unloved models in North America right now, and its lonely existence translates into big savings for thrifty shoppers willing to make do with a less-capable EV. Ford cut $6,000 from the car’s price in 2015, and sales continued to fall despite a $4,000 price reduction the year before. You can also lease one right now for little more than a smile and a handshake.

Electric cars remain a difficult sell, especially considering there is always something better right around the corner, but leasing them is exceptionally popular — comprising roughly three-quarters of the EV market. It makes sense when lease-rate comparisons typically work out to EVs being more affordable than a similarly priced internal combustion vehicle.  Read More >

By on February 3, 2017

BOOK by Cadillac Website

General Motors’ luxury division isn’t content with brewing coffee and showing off fashionable new threads at its new SoHo space — it also wants you to drive its cars.

Book by Cadillac, a monthly subscription lease service that launched one month ago, aims to get more people in the metal to the tune of $1,500 a month — and 24/7 Wall St. is already calling it a “major flop.”

According to the self-described “financial news and opinion” website, “[Uwe] Ellinghaus [Cadillac’s chief marketing officer] in particular has to be humiliated,” as there aren’t enough subscriptions available to supply the demand.

Say what now?

Read More >

By on January 6, 2017

Cadillac ATS-V.

If you’ve ever found yourself buying someone a $10,000 handbag or worrying that not enough of your clothing is made from cashmere or silk, you’ll want to know that Cadillac will let you “subscribe” to its cars for a tidy monthly sum of $1,500.

“Book” by Cadillac is a $500 app that lets you select the most premium offerings from the brand and have it delivered to your door. However, you’re not leasing or purchasing a vehicle from General Motors’ flagship brand — you’re just borrowing one. Cadillac is touting this as some sort of transformative, fancy-free way to own a car. Still, it doesn’t actually alleviate most of the problems associated with car ownership, especially not in the urban markets it plans to test the service in.  Read More >

By on July 19, 2016

money cash (Frankieleon/Flickr)

Want to feel a real connection to something? Pay cash for it.

Research shows the act of handing over real, honest-to-God paper money and coins for a product has a profound impact on the value a person places in that product. Suddenly, it turns into a possession. Read More >

By on July 6, 2016

Suckers at the Stock Photo Dealership with a Credit Card

A record 31 percent of all new vehicles sold this year in the U.S. are leased. I spent a good part of my career studying why some people refuse to lease. Much of their resistance stems from bad buzz. Some say it’s because of the stories they heard about ’80s-era open-end leases where owners were responsible for paying the car’s residual value at lease end. (These are the same customers who will not buy a Hyundai today because they produced crappy cars in the ’80s.) Others oppose leasing because they heard about a guy whose cousin’s neighbor had to pay $5,000 in wear and tear or excess mileage charges at lease end. And there are those of you who will brag comment below about how you always pay cash for your cars and don’t understand why other people won’t follow your lead.

This article is not designed to convert such non-believers to leasing. This advice, drawn from my years in the auto finance business, is for buyers who know the basics and benefits of leasing, want some timely tips on how to get the lowest possible payments, and want to pay less money on lease-end charges.

Read More >

By on June 19, 2016

2015 BMW i3 Range Extender, Image: © 2015 Alex L. Dykes/The Truth About Cars

Have you been considering a new BMW but only have enough coin to buy one of Bavaria’s finest? At least one BMW dealer in the U.S. might have a solution.

If you don’t mind buying a new BMW that’s been languishing on the lot for a year, Century West BMW will throw in a lease on a BMW i3 on the house.

Read More >

By on April 1, 2016

Ford Dealership

Light vehicle sales haven’t peaked in the U.S., but the way they’re being sold is putting automakers in some financial peril.

That warning was delivered by Thomas King, vice-president of the Power Information Network, ahead of this weekend’s National Automobile Dealers Association, Wards Auto reports.

Speaking at the J.D. Power Automotive Summit, King said retail sales of cars and light trucks will rise this year and next, even after a very healthy 2015. Last year saw 14.2 million units reach customers, with volume projected to hit 14.7 million in 2017.

Despite moving more vehicles and rising MRSPs, automakers risk forgoing the financial benefits due to incentives and a growing trend towards leasing.

Read More >

By on March 31, 2016

2015 Ford Focus Electric

If you live in California and your demographics are right, your electric car dream is within reach. Yes, even you, baristas and struggling actors!

The website Leasehackr stumbled upon a killer deal for lower-income Californians (assuming they live near charging stations), and spelled out how leftover 2015 Ford Focus Electrics can be leased for essentially nothing.

If your personal life aligns with Ford’s customer incentives and California’s revamped EV rebate program, it can be done.

Read More >

By on March 28, 2016

2016-Cadillac-CT6

The lowly Cimarron might be be a distant, nightmare-fuel memory, but Cadillac’s current sales strategy is still being impacted by a history of not measuring up to European rivals.

The luxury automaker’s newest offerings — the CT6 sedan and XT5 crossover — have been saddled with so-so resale values by residual forecaster ALG, according to Automotive News, making it more difficult for Cadillac to offer competitive lease rates.

Read More >

By on March 21, 2016

2014 Toyota Camry SE

A wave of older vehicles is poised to flood Toyota dealer lots, but the automaker is confident it has just the plan to deal with it — pre-owned leasing.

Toyota is certain that adding a leasing option to its certified pre-owned inventory would boost CPO sales and clear lots in the face of a growing compliment of three-year-old product, Automotive News reports.

The plan has already been quietly rolled out in the U.S. Northeast, but a national strategy should be in place by the end of April, dependent on training in each dealer region. The option would allow a reduced commitment for buyers who don’t want to finance the full cost of a pre-owned vehicle. Read More >

By on March 3, 2016

subprime-lenders-car-get-you-guaranteed-approval-on-bad-credit-auto-loans

Good times have clearly arrived, because Americans are flinging money at cars like it’s going out of style.

Leasing has never been more popular for American car buyers, reports the Detroit Free Press, and the size of their auto loans have also reached record territory.

Read More >

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