Drivers regret Cash for Clunkers leases

[LTC8K6]

Quite a few folks saw this coming with those long leases.

http://news.leasetrader.com/archive/2010/08/03/Drivers-regret-Cash-for-Clunkers-leases.aspx

Thousands of people who leased cars last year as part of the Cash for Clunkers program are having second thoughts and are trying to get out of their leases, reports LeaseTrader.com.
...

 

[angry hampster]

Well yeah, because leases are always a bad deal

 

[MotF Bane]

Cash for Leases! Now the government will buy out your lease!

 

[StageLeft]

Just loled in my pants. However:

The only other choice is to break the lease, but then the lessee must immediately pay the remaining payments, which often amounts to more than $10,000.

Is that true? I had the impression, not based in anything but general common sense, that I could cancel my new lease on my car if I simply ate some loss defined at the time based on its current value and things. I mean I would assume maybe a couple K out of pocket to break it. Surely an early-turn in doesn't require all future payments to be made?

This article is more about "feelings" of John Sternal than hard figures, though (at least as reported). Still, is it any surprise that a person with a paid off car starts to question his decision when he's now paying $250, 350, 400+/month for his new one? He may feel like a decadent consumer, and in some cases probably is one.

My favorite thing about leasetrader is looking at leases that are much more expensive than getting a new one because they were done before lease rates were through the floor, though this is only on certain cars.

 

[LTC8K6]

CARS required the lease to be 5 or more years...

 

[amdhunter]

Just loled in my pants. However:


Is that true? I had the impression, not based in anything but general common sense, that I could cancel my new lease on my car if I simply ate some loss defined at the time based on its current value and things. I mean I would assume maybe a couple K out of pocket to break it. Surely an early-turn in doesn't require all future payments to be made?

As someone who broke his lease early (and bitched and moaned all over this forum) -- Yes, you do have to make all the future payments.

BUT -- the car is then auctioned.

If the car sells for more than the residual + remaining payments, you'll get some money back. If not, you'll lose the payments.

I got lucky and ended up making $2k in profit for turning in my car early. I still haven't spent the money since I found out my car is an untunable hunk of metal.

 

[amdhunter]

CARS required the lease to be 5 or more years...

Holy shit that's an insane amount of time. If I ever decide to lease again, it will be for no longer than 1 year - period.

 

[HarryLui]

Serve them right.

 

[JeffreyLebowski]

Ha, they got forced into a 5 year lease, I buddy of mine signed a lease without even reading the details and when he went to turn in the car after the 3 years he thought it was, found out he got taken for a ride with a 5 year lease. So now he is at the milage limit and has 2 more years to go.

 

[StageLeft]

Holy shit that's an insane amount of time. If I ever decide to lease again, it will be for no longer than 1 year - period.

Who allows a lease of a year? Unless you use leasetraders or something.

Good to know about the auction approach...

Whoa there. This makes sense to me, does it to anyone else? Especially in light of AMD walking away with $2k on a lease I recall being fairly close to completion. If I have a residual payment in my lease of $15k and for some reason I am pretty sure those cars are going for $17k at auction, wouldn't it make sense for me to break auction a month early and instead of handing in the lease at normal time walk off with $2k minus that last payment? Is this a common thing?

 

[vi edit]

CARS required the lease to be 5 or more years...

LOL. As a guy who has done a couple leases...these people were full blown retarded. If you are going to lease, keep it short and when the manf is offering heavily subsidized capitized values and very low money factors.

 

[speedy2]

BWAHAHAHA. Nice. I was saying this back when they were offering that crap. If you really NEEDED cash for your clunker, what are you doing trying to take on a new car payment? Retards.

 

[speedy2]

Not to mention, all those cars that were traded are now crushed/killed.

 

[v8envy]

5 year lease? That's simply insane. How can that possibly be more economical than a 60 month loan. 2 years out of warranty and with up to 60k miles most cars are worth what, 10-25% of original price wholesale? With a no doubt higher interest rate a 5 year lease *should* be more expensive than a 60 month loan per month, and come with stipulations to boot.

Ah well, average IQ is 100 and half the people are dumber than that.

 

[amdhunter]

Who allows a lease of a year?

You just have to ask, but there may be some gotchas.

For example - At Audi, I was looking at an S5 for 1 year, but the entire year had to be pre-paid + allowed mileage can be really low to keep the residual value high.

After taxes, registration, title...etc, I was quoted ~$14k (with 6k down...$20k total...lol) Yeah, it's expensive as shit, but I would have had a nice time in a decent Audi. :\

BMW was more generous, with the 1 year lease costing ~$100 more than a 3 year. This one might depend on the dealership though. Some outright refuse, others don't care.

 

[KeithP]

Leasetrader.com is a fun web site to browse. There are a lot of "what the @#ck were they thinking" listings.

It should be required that anyone considering a lease browse that site.

-KeithP

 

[amdhunter]

Leasetrader.com is a fun web site to browse. There are a lot of "what the @#ck were they thinking" listings.

It should be required that anyone considering a lease browse that site.

-KeithP

I just found a 2007 Camry for $677/month...lol
WTF are people thinking?

 

[StageLeft]

I just found a 2007 Camry for $677/month...lol
WTF are people thinking?

Agree, some of those are pure and unadultered lulz. It's possible to get a base Camry now for under $200/month lease just paying tax, title, (the basic stuff). A $677 what was MSRP on that Biz, $60k? Get real. Some of these people are hopeless, they will never find anybody willing to take the car.

 

[Throckmorton]

Cash for clunkers = fail

 

[Gibson486]

5 year lease? WTF?

just take out a 5 year loan.

 

[AstroManLuca]

Man, that LeaseTrader site is comedy gold.

Brand new 2011 Toyota Sienna. Yes, a minivan. 36 month lease with 35 months left. $750 a month. Actually, they were only asking $750; it said the terms were for $809/mo.

I also saw a Boxster at over $1,100/mo.

 

[Gibson486]

Man, that LeaseTrader site is comedy gold.

Brand new 2011 Toyota Sienna. Yes, a minivan. 36 month lease with 35 months left. $750 a month. Actually, they were only asking $750; it said the terms were for $809/mo.

I also saw a Boxster at over $1,100/mo.

Am I missing something here? That is $27,000.....for a lease. That is how much they cost to buy new without negotiating the sticker price.

 

[StageLeft]

Man, that LeaseTrader site is comedy gold.

Brand new 2011 Toyota Sienna. Yes, a minivan. 36 month lease with 35 months left. $750 a month. Actually, they were only asking $750; it said the terms were for $809/mo.

I also saw a Boxster at over $1,100/mo.

That is great stuff right there. Last week I was quoted at a local dealership on a 2011 LE (MSRP $26k or so) at $258/month with $4k out of pocket (to cover all taxes, etc.), so $13,288. Of you can go with 35 months at $750 and $26,250. So I hope that van they have is absolutely 100% decked out, but even then I think siennas top out in the 40-42k type range.

 

[StageLeft]

Bloody hell, I found the van you mentioned:
Total Miles Allowed:
36,006
Miles Remaining:
35,756

250 miles an buyer's remorse? You must be kidding me. It is not a loaded van; it doesn't have AWD.

 

[StageLeft]

2007 Saturn Aura XR
Lease Months Remaining: 14
$550.36 per month with $0 down

SIGN ME UP RIGHT NOW!

2009 BMW 328i Coupe
25 months @ $320, could be reasonably fun.