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mmret
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« on: October 11, 2009, 08:13:35 pm » |
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Has anyone noticed that a lot of the deals shown on leasebusters are really, really bad? Take this one for example: http://www.leasebusters.com/en/details.asp?ID=846072008 SLK280. Mileage is 15k 20 months remaining at $763 + tax Buyout is $38,160. Ignoring interest, your total commitment if you intended to buy out the car at the end would be $53,420 + taxes. No incentives or anything offered. Why do people not understand the concept that depreciation is nonlinear while lease payments are linear?
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Have: 06 TSX, 07 Z4 3.0si Roadster
Sometimes Borrow: 11 GLK
Had: 01 GrandAm, 07 Civic
Dream: SLS AMG
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Railton
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« Reply #1 on: October 11, 2009, 09:37:51 pm » |
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You have to be really lucking to snag a deal on that site.
Railton |
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Do you realize that in about 40 years, we'll have thousands of old ladies running around with tattoos?
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sailor723
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« Reply #2 on: October 12, 2009, 07:06:29 am » |
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It has never made sense to me. If you are just taking over the existing lease terms in effect you're paying "new car" lease payment levels for a used car lease.  |
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My first ever GM ownership experience can best be described as "Fool me once...."
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mmret
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« Reply #3 on: October 12, 2009, 04:30:00 pm » |
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Which is why a large cash incentive is required to make the deal work...or alternatively it could make sense if there are very few payments left but the buyout is well below market value (not that likely though, imho).
But people don't get this and they think "well I need someone to take this over, I owe $X so I will list it for $X". Stupid. |
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Have: 06 TSX, 07 Z4 3.0si Roadster
Sometimes Borrow: 11 GLK
Had: 01 GrandAm, 07 Civic
Dream: SLS AMG
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vdk
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« Reply #4 on: October 12, 2009, 05:37:05 pm » |
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Just wait(!) and find someone who needs to get rid of their car fast.... That being said, some time ago I found someone selling a GTI with $0 incentive, 18 months left on the lease and no free KMs remaining.  Good luck there buddy! |
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safristi
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« Reply #5 on: October 13, 2009, 10:03:57 am » |
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Hell,there are ridiculous car "deals" on Kijiji/AutoTrader your local car lots OLDE & NEW....imho the best raison d'etre for a LeaseBusters is trying LOTS of cars for a short while without the pain of Buying new(ish) and having to unload them...... e.g an 8 Month Miata deal starting in April........an interesting 4 WD you have always wanted to try over a Winter......a BIG CRUISER for that Summer trip across Canada/States dream trip...etc etc.......we can't ALL be Ov'r 50's  ......and swap our dream cars like underpants.............  |
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THERE IS NO CURE FOR "LOTUS"......ONLY TREATMENT.....
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y2chuck
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« Reply #6 on: October 13, 2009, 10:11:13 am » |
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yeah, the deals have really gotten worse over the last couple of years, very rare to find something half decent IMO. I'm waiting for a compact/sub-compact with ~6 months left at a really cheap price for the winter so I can store the Mustang. |
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Current Cars: 2012 Mazda5 GS, 2011 Ford Fiesta SE Hackback
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Flinter
Auto Obsessed
 OfflineVehicle: 2011 BMW 128i
Gender: 
Location: Ottawa, ON
Posts: 917
 
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« Reply #7 on: October 13, 2009, 10:40:56 am » |
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....imho the best raison d'etre for a LeaseBusters is trying LOTS of cars for a short while without the pain of Buying new(ish) and having to unload them......
e.g an 8 Month Miata deal starting in April........an interesting 4 WD you have always wanted to try over a Winter......a BIG CRUISER for that Summer trip across Canada/States dream trip...etc
Agreed, I think these lease takeover listings only make sense for 6-12 month terms unless the current leaser is willing to step up to the plate with a sizeable incentive. I did a similar thing a while back where I took over a lease on a Toyota Highlander from a family member for ~6 months during the winter. I found it to be a great way to sample a vehicle for an extended period of time without a huge commitment. If the vehicle grows on you, there is the option to purchase at the end of the lease. |
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ktm525
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« Reply #8 on: October 13, 2009, 11:32:49 am » |
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I noticed the same thing, the large cash incentives have been disappearing, and without them there is no deal. With lease return inspections getting tougher it really does not make a lot of sense.
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farleywilbur
Learner's Permit
OfflineVehicle: 2012 ML350 BlueTec
Posts: 118
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« Reply #9 on: October 13, 2009, 01:08:49 pm » |
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I have been checking the site out looking for a replacement vehicle for my wife as she will lose her company car for 10 months while on maternity leave. It's either a lease takeover or buy a used Toyota Sienna in the US and take advantage of the current exchange rate then sell the van after her leave (for a profit maybe??). |
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inco
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« Reply #10 on: October 26, 2009, 08:39:19 am » |
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I admit I don't spend a lot of time looking at the site so really can't comment about the current state of the business. However I do believe there are still some deals there to be found.
Some people, for different reasons, put down large payments up front. Sometimes it's the car company that requires that in order to get the payments down. Either way people can take advantage of this and get good deals. At the end - move on or buy out. |
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Careener
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« Reply #11 on: October 26, 2009, 09:01:33 am » |
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It's pretty rare to find someone who made a large downpayment on Leasebusters Inco.
They also sell cars..I've always wondered if they don't snap up the best deals for themselves before they go public on the site. |
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Former Rust Enthusiast
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johngenx
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« Reply #12 on: October 26, 2009, 09:10:14 am » |
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People used to be bailing on the lease of their Acura TL 'cause they were upgrading to a Lexus LS460 and didn't mind throwin' a few thou at someone to get rid of their now-low-status "clunker" of a two year old Acura.
Now, with unemployment way up, leasebusters is populated with broke, unemployed people dying to get out from their payment. Do they have wads of cash to burn? No!! |
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No place I'd rather be...  |
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Railton
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« Reply #13 on: October 26, 2009, 10:12:44 am » |
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It's pretty rare to find someone who made a large downpayment on Leasebusters Inco.
They also sell cars..I've always wondered if they don't snap up the best deals for themselves before they go public on the site.
Bingo+inspections also tougher nowadays = high risk. Railton |
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Do you realize that in about 40 years, we'll have thousands of old ladies running around with tattoos?
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TopGun
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« Reply #14 on: October 26, 2009, 11:49:13 am » |
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My sister has an A4...and a change to her working out of her home more often means it was way less kms than she's allowed. My guess is that the dealer won't give her any value for those kms.
Maybe she should put it on lease busters as a way to get some value for it as there is no way she'll be able to "use up" the km adjustment with the time she's got left on her lease. |
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If it flies, floats or f#%&s...rent it.
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Canada Stig
Learner's Permit
Offline
Location: GTA
Posts: 131
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« Reply #15 on: November 17, 2009, 03:34:03 pm » |
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It's pretty rare to find someone who made a large downpayment on Leasebusters Inco.
They also sell cars..I've always wondered if they don't snap up the best deals for themselves before they go public on the site.
I guarantee it. I about 3 months ago inquired about a vehicle that I was currently leasing that is larger than I need. Only 15 months left and I got an employee price on it (a real employee price, not one of those summer promotions). Needless to say, I was not desperate to get rid of it, but it is a heck of a deal. So, I got a call back almost instantly from Leasebusters who said it was a near sure thing it would be gone quickly - the payment is easily 20% lower than the same vehicles on their site and the buyout is attractive, plus we were about 8,000 under the km allowed at that time. I said I would think about it as I had the option of flipping it at the Honda dealer early, and if I wanted another Honda that would be easier for me. 2 days later, another call - with a 1/2 price listing offer. I said I'd think about it. 3 days later, an offer of a free listing. Why? My car was so attractive. Then I asked the $64000 question - "Is leasebusters interested in this vehicle for themselves"?? Yes. Since the payments + buyout work out to $5K less than comparable vehicles on used car lots, they were interested because they wanted to re-sell it. Needless to say, the Honda dealer offered me $2500 off my new CRV based on the equity in my current lease, so that's the route I took. And my old van disappeared off their lot within a week. |
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PMREdmonton
Learner's Permit
Offline
Location: Edmonton
Posts: 232
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« Reply #16 on: December 02, 2009, 02:33:19 am » |
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I tried that site for awhile looking for a car with a reasonable buyout but really didn't find anything on the site that appeared to be as good as in the used car market. Now I see why that is.
So that's not a bad business model they have going there. If the person offers a good lease return deal, the Leasebusters company jumps in and buys it out on the spot. If the offer is no good, they will list it on their website just in case the public can be duped into a bad deal - nevertheless, they make some money off of it.
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The Mighty Duck
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« Reply #17 on: December 03, 2009, 05:55:51 pm » |
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^ Brilliant businesses strategy for the company... very savvy. Morally it's another story, of course... |
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Demosthenes [noun], dem-aws-thene-s
1) (384 BC – 322 BC) the greatest of the Ancient Greek orators
2) pseudonym used by Valentine Wiggin in Orson Scott Card's Ender's Game to alter the events of world history
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Turbo Bob
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« Reply #18 on: December 03, 2009, 06:12:13 pm » |
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I have been checking the site out looking for a replacement vehicle for my wife as she will lose her company car for 10 months while on maternity leave. It's either a lease takeover or buy a used Toyota Sienna in the US and take advantage of the current exchange rate then sell the van after her leave (for a profit maybe??).
That's pretty harsh. My wife got to keep her company TSX whilst on mat leave, twice. Can you imagine if you were a single parent and your employer took away your only form of transport, nightmare...  |
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Power is how fast you hit the wall... Torque is how far you take the wall with you!  |
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johngenx
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« Reply #19 on: December 03, 2009, 06:42:24 pm » |
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That's pretty harsh. My wife got to keep her company TSX whilst on mat leave, twice. Can you imagine if you were a single parent and your employer took away your only form of transport, nightmare... My daughter was born in July, and because teachers are technically only employed for Sept-June, she lost all her mat benefits as she was not employed by the board at the time. So she got EI, but no top-up, which was a LOT of money lost. Then, to make it worse, they used to claw back EI benefits if you earned a certain amount in the period after your mat leave, and so we not only received no pay or benefits from the board, but ended up paying back all the EI. |
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No place I'd rather be...
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