Car Sales / Odd Lease Situations
shailynn
They never tell you what you need to know.
I’ve talked at length before about how crazy new and used car sales have gotten over the last 3 years. I WANT a new car I do not NEED a new car so I’ve been watching on the sidelines attentively and prices have been significantly dropping since late October. Some cars I’ve been looking at are almost $10,000 cheaper now than they were in October. I’ll wait longer to see what happens. I figure by late February prices will drop more but may stabilize around March when people get their tax returns. You’d be surprised how many dealers are busy that time of year because people have tax returns to put on a down payment for a purchase or lease. By waiting, yes the value of my current cars keeps dropping as well but I don’t see that as much a factor.
Anyway, I saw an advertisement this morning for a Nissan truck and the lease was 18 months. Since when does someone lease at $32,000 truck for 18 months? Just seemed weird to me, the only lease I have seen that short before was on an exotic car. BTW the down payment was around $1,800 and monthly payment was $299. This disclaimer said a well equipped model was $335 a month. Typically most leases I see are somewhere in the 3 year range. I am not interested in a lease I was just curious if anyone else had seen deals like this recently?
Anyway, I saw an advertisement this morning for a Nissan truck and the lease was 18 months. Since when does someone lease at $32,000 truck for 18 months? Just seemed weird to me, the only lease I have seen that short before was on an exotic car. BTW the down payment was around $1,800 and monthly payment was $299. This disclaimer said a well equipped model was $335 a month. Typically most leases I see are somewhere in the 3 year range. I am not interested in a lease I was just curious if anyone else had seen deals like this recently?
17 comments
As far as waiting, you do you, but I played the waiting game and finally did it last month. I took about a 15k hit between new car prices rising and used car prices falling. I woulda taken a beating on the loan too, but those rates were so ugly I decided to just pay cash. I didn't have to buy when I did, but I'd been fighting the itch for about a year and couldn't resist anymore. Best of luck to you, hope you time it out better than I did.
Ion not in the market for a new car as mine is great and over the last three years I’ve only put 14000 miles on mine, but if I were to be looking I’d wait until June or July see if that recession they keep promising us actually happens, if so and you’ve got king cash, new car deals will be super cheap.
Also leasing is not a good option for me, my cars only get used around 3,500 miles a year.
Do car salesmen make more off leases/financing vs if people buy with cash? A few salesmen at the same dealer were trying to push me towards leasing or financing, one even claimed they normally dont offer discounts on cars people are buying outright
It’s just past the start of the year, and generally the new models come out in Sept, so they likely see that a specific pick up model isn’t selling (or they overproduced) and this is an incentive to move sales.
With an 18 month lease, it will be over before there are 20,000 miles on the vehicle. It should still retain more than a 65% residual value, so the manufacturer may be able to resell it quickly and for a decent markup.
My guess is that it’s an offer from NMAC, so any losses as a result of being aggressive on the residual value can be buried in the accounting as the books should be closely held between the parent and leasing arm of the parent.
I still can’t recall ever seeing an 18 month lease advertised. You rarely see 24 months anymore too - or at least I don’t.
Most larger dealers DO NOT want cash buyers, they’ll make more money hiding fractions of percentage points on loans or leases. Most smaller independent used dealers could care less either way.
The manufacturer will know when the model will be redesigned, or other factors, and that can contribute to the shortened lease term. They will clear out the remaining 2022’s and when those leases end, the 2025 redesigned model may be coming out.
But if I had to buy another car right now, I'd be back to cash and carry. I wouldn't want to get stuck with an expensive car loan for years to come.
Weird.