Comments on: Chrysler Spins Lease Withdrawal

By: Beelzebubba

Beelzebubba — Thu, 31 Jul 2008 01:03:45 +0000

I can already see the banners now- Chrysler Sebring 4-door, lease for only $499/month for 36 months!

As to the #4 statement above- it reminds me of how GM took away all the Cadillacs, Corvettes and SUVs from many execs when the Pontiac Aztek hit dealer lots (then refused to move any further). They forced various levels of execs and middle managers to drive an Aztek instead!

Since actual buyers wouldn’t touch the Aztek with a 10-foot pole they dumped them off on their own employees and, I’m not kidding, I even remember reading that they were told to look “happy” driving them! =)

Chrysler can’t sell their crap, so they might as well toss a few to their execs and other corporate staffers…they just might be the only new Chrysler vehicles any of us will see out on the road!

By: 50merc

50merc — Thu, 31 Jul 2008 00:59:17 +0000

motownr: “…They lease because they have historically had little need to save for retirement/healthcare, and b/c they can pick up new cars for incredibly low payments.
As in trucks for $79/mo; minivans for $100/month, and so on. Kids…meet candy store.
Wouldn’t you have a bunch of cars if they were this cheap? In Detroit, workers frequently have tiny houses with a driveways loaded with year old cars.”

Wow! I knew management was cosseted from the unpleasant aspects of car buying and maintaining, but I didn’t realize the working stiffs also got such sweet deals. No wonder Detroit couldn’t understand why customers by the many millions felt abused. Ford, GM and Chrysler worked great for those on the inside!

By: Happy_Endings

Happy_Endings — Thu, 31 Jul 2008 00:48:35 +0000

I love the Bob Marley references! Think I’ll go listen to Exodus now …

By: Under_the_Bus

Under_the_Bus — Wed, 30 Jul 2008 23:04:17 +0000

our execs will continue to get cheap cars

Yeah like they drive any of their own products.

By: motownr

motownr — Wed, 30 Jul 2008 21:13:32 +0000

They lease because they have historically had little need to save for retirement/healthcare, and b/c they can pick up new cars for incredibly low payments.

As in trucks for $79/mo; minivans for $100/month, and so on. Kids…meet candy store.

Wouldn’t you have a bunch of cars if they were this cheap? In Detroit, workers frequently have tiny houses with a driveways loaded with year old cars.

A unique situation, to say the least.

By: toxicroach

toxicroach — Wed, 30 Jul 2008 19:33:50 +0000

Do employees lease because they are expected to have reasonably newish cars or do they lease cause they know something we don’t?

By: motownr

motownr — Wed, 30 Jul 2008 17:56:14 +0000

Obviously, somebody mentioned that 90%+ of employee business is lease. Take it away, and CFC would have tons of fun towing vehicles away from some very large and very bankrupt dealers.

By: AJ

AJ — Wed, 30 Jul 2008 16:55:31 +0000

I suspect that this is about residual values. I’ve been looking at picking up a used car, and there are some real deals right now on slightly used vehicles with average or below average mpg, not mention new.

Plus, as gas was going up and up, how many people were dumping their gas hogs thinking it would be even harder to do so if gas hit $10 gal.?

By: Firehouse

Firehouse — Wed, 30 Jul 2008 15:00:46 +0000

the Truth is you CAN embed videos from TheFirehouse.biz, just click on the video tab at the top of the page (give it a bit to load) to go to the video library. I tried to include the embed code in this message, but it won’t go. The video can also be seen on the Voices of Chrysler blog at http://www.ChryslerLLC.com, click on the Blog link at the top.

By: jaje

jaje — Wed, 30 Jul 2008 14:58:55 +0000

I’m already getting offers from GMAC on my truck lease for a reduced buyout price (expires summer 2009). Truck buyout is $13k at lease end and they are offering $9k but I’ll offer likely $6k (probably all they’d get at the auction) and see if they bite.

By: Conslaw

Conslaw — Wed, 30 Jul 2008 14:28:06 +0000

I’m currently leasing a 2006 Dodge Grand Caravan. (Not a bad vehicle, actually.) My lease is up February 2010. I wonder whether Chrysler will pay me to keep it by discounting the residual?

Are there any fair readers out there who have turned in a Chrysler leased vehicle recently? Were they in a dealing mood?

By: tulsa_97sr5

tulsa_97sr5 — Wed, 30 Jul 2008 14:21:25 +0000

regarding points 2 and 3, i’d think repo would be the absolute last thing they’d want to do at this point, let that loss hang out there till the last second. I’ll also bet they are going to wheel and deal a lot more than outlined above to convince leasees to buy those vehicles at the end of the lease.

By: autoemployeefornow

autoemployeefornow — Wed, 30 Jul 2008 13:51:46 +0000

Company cars for “execs” who have to pay for their lease cars are at 1.9% of wholesale. If you think a lease on a $30,000 car/truck at $570/month (includes insurance) is cheap then I guess your comment about execs continuing to get cheap cars is correct

By: Ralph SS

Ralph SS — Wed, 30 Jul 2008 13:36:16 +0000

So. Question: if the ceasation of leasing, at least to the degree and effect of how it was vs. how it will be at best now, is due to residual values far below the planned value at lease end for Chrysler and GM (and Ford, more or less, too), will companies who’s vehicles do not suffer this malady (Toyota?) change their leasing operations too? Or will they stay the course? Or will they even further leverage this advantage?