Whats the difference between retail financing and leasing financing?
Leasing can be good for the right people. Essentially, in a lease, you never “own” the car. You make payments for 2-3 years, then hand the car back. Think about it almost like a long-term rental. If you purchase a car on a conventional ‘buy’ contract, but trade it off before you are done paying for it, you never *owned* that car either. If you routingely trade out of cars every 2-3 yrs, you never *own* them at all. You are just moving from one monthly payment to another. Dealers make no more on a lease than they do on a purchase. The cap cost of the car is the same as the ‘buy’ price. A lease customer has no need to buy extended warranties or any other extras – in fact lease companie usually don’t allow for them. So we typically make LESS on a lease than a ‘buy’. The residual is set by the bank, not us. When the car is handed in at the end of the lease, the dealer is just an agetn for the bank. We don’t stand to gain anything on the residual, except hoping you buy another car in teh pr
