Leasing vs. buying a car, it is always the first lease and save

Rent a car First and Buy It Later

Save a lot of money. Analysis of buying or leasing a new car is not required until the cars have an excess on the market.

Owning a car for the lowest price possible and terror by making a lease vs. buy analysis, do not buy a car, rent it then buy it later and save a lot of money.

Exploiting the excess of cars for sale

As long as car production exceeds the consumption, and large discounts are available for many years to come, just read the market trends and to lease the first and ignore all those programs lease vs. buy.

In the past, manufacturers moved cars by subsidizing leases. The
Monthly lease cost was lowered by increasing the residual value, which lowered the monthly payment of rent, to sell (leasing) more cars.

The lease residual values ​​are inflated in your favor

But the value of the vehicle at the end of the lease was almost always less than the residual of each contract and off-lease cars then had to be sold in the wholesale market to a loss of several thousand dollars.

Some of the biggest proponents of leasing, Chrysler ®, some New York banks, and others, each lost several hundred million dollars in each of the last two or three years because they had to sell off-lease cars on the open market for less than residual value.

Take advantage of too many cars for sale

Therefore, the decision to buy or lease a new car is irrelevant as long as the manufacturers are subsidizing leases because they have too many cars to sell, once this opportunity is, that is to say, you rent now and buy it at a discount at the end of the contract Lease and save thousands of dollars.

Having to make a lease vs. purchase decision is no longer necessary as long as supply exceeds demand and the old rules are currently covered by a surplus of Opportunity carsThis will only last for two or three years.

This situation will not change for several years until consolidation, plant closings, or bankruptcies have cured the problem. up. Plant closures will be the last.

Therefore, the glut of new cars will likely continue for some years. Now is the time to take into consideration the main advantage of a resale value decline of most cars. The subsidized lease will continue to be offered

Should I buy or lease a new car

Initially, the leasing of a vehicle, the manufacturer is essentially offering a price that can not be beat. It might actually be closer to or lower than the "employee cost" widely advertised. Then buy the car at the end of the lease.

At the end of the lease the company financially self supporting the lease
most likely will sell the car on the open market at a loss. Why not intervene at that point and buy the car for less than the residual value and put that "loss" in your pocket as money saved?

Discover your car value used car lease End First

About three months before the end of the lease, cruise the used car lots and notice what your car is offered. Note tha the carprice is always greater than the value used to allow resiudal dealr costs and profits. A pillow ten percent is not unreasonable.

Then compare the asking price of used cars on the lot with the residual value of the lease. The residual value may be higher than the asking price for a similar model used car. This means that the company owns the lease on your car will sell at a loss when you turn it in.

Now you put the knife in and buy the car (no commissions paid to anyone on this transaction) at the end of the lease and keep several thousand dollars in his pocket.

Bypass the dealer to make your offer Buyout

At the dealer, get the phone number of the company that owns the car and lease. Call them and offer to buy your leased car for the asking price of used cars on the lot of less than about 10% at least.

If you oppose, argue that the car will sell at a loss because the residual value is higher than what the camera is on the batch of used cars. They know that, but I hate to admit it.

So lease the car of your dreams today and forget about excess mileage charges.

A real life example

A friend took me a three-year-old leased car with a residual value of the contract of $ 28,000. Looking at the used car lot who discovered they could buy one like it for $ 24,000. He took over the company that financed the lease would be losing at least $ 2,000 to sell for less than the residual value of the contract.

Through the dealer he offered $ 22 000 to buy the car as is and his offer was promptly accepted, including 3%, 3 years of funding. His relations, all by phone (no face to face negotiations needed) were with the company financing the lease. To purchase any car, van or SUV or a truck or Light, by all means consider the idea of ​​leasing or purchasing an answer ....