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Is Leasing A Good Option?

images-111.jpgCar shoppers are always questioning whether they should lease or buy.  But, here’s another question for shoppers: Will you even be able to lease your next vehicle?

U.S. carmakers’ financial subsidiaries have had to cut back on their leasing program, because of lower used-car values, especially with large vehicles.

Based on reports of poor earnings, Chrysler is completely abandoning leasing, and GM and Ford are making it hard for people to arrange leases through financial subsidiaries.

In fact, all carmakers are trying not to rely on leasing because it harms a profit picture that is already bleak.

The reason that this trend is continuing is because of the high risks and costs of leasing compared with regular cash and APR business.

Even foreign carmakers are considering following the lead of domestics, although for now they still offer leases.

But, the original question of should you lease still remains.  The domestic carmakers are going to make it so expensive to lease that you should probably avoid it.  Instead, purchase new or used with an auto warranty to protect you in case of unforeseen repairs down the road.

Posted on Friday, May 22nd, 2009 at 3:38 pm In Auto Warranty  


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