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Originally Posted by Buickman
here in Michigan I assure you people lease not only for the payment but for the desirable trading cycle. also we do not have tax on the difference like most states, therefore, leasing has an additional advantage. again I claim the trouble stems from bad management as oppsed to economic factors. not to discount the fuel prices, it's just that poor decisions are coming back to haunt. had our marketing been stronger, our resales would be higher and the depreciations not nearly as severe. ie BMW etc...
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BMW announced that it is raising lease rates by 5-10%. Many of the asians have said to raise by as much as 5%. This isn't a management decision but a choice made on the outside. If my memory is good, Michigan's leases were slightly higher than the rest of US at about 30%. If you are in the more rural areas it may go as high as 45-60%. Leasing goes up where the general population tends to be less "lucky". Still the average of lease buyers are 20% in the US. GM may be early to the ending the lease program, but for once it was a move that was done on time in order to anticipate for the flaky market. All others are following, simply at their own pace. Do you think Ford, Honda, Nissan like to assume huge losses when they can do something about it? Leasing in general will go back to unsubsidized levels of 18-20% within the next year, not only for GM but for all automakers. Financing will be the new attractive option.
Quote:
Originally Posted by Ach
But a little anecdote- the lease will be up soon on my wife's '06 Saturn VUE- she loves it and wanted to lease another one. But even after visiting three Saturn dealers (and I am comfortable with negotiating) the best we could do on a lease of a pretty basic '08 VUE XE 3.5 (cloth, no sunroof) was within $12/mo. of the lease on an Acura RDX (non-tech, so no Nav but still pretty loaded including Xenons, leather, roof, etc.) w/ same money down and mileage. MSRP of the Saturn was around 27K, the Acura around 34K. Guess which one she wants.
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Not sure how that was all calculated. A lease on a Vue with an MSRP of about $27.5k comes up to about $490 a month. The RDX with about a $33.7k MSRP comes up to about $660 a month. Neither of which include taxes and down payments. Both are on 36 month terms. 72 months purchase financing on the Vue is $440 a month and for 48 months is $615. Sad part is that I priced out a Vue V6 AWD XR for that price, not an XE.