Open-ended vs. Closed-ended Leases

Open-ended vs. Closed-ended Leases

by John Koehler Comment Closed
**This post contains affiliate links and the publisher may be compensated if you make a purchase after clicking on these links.** You may see a lease referred to an "open-ended" or "closed-ended", if you do it's likely to be in the fine print, legalese, or wherever the dealer/manufacturer/lessor has put some important but confusing details they hope you won't read.  Even worse, maybe the advertiser won't put it in the fine print but puts "open-ended lease" or "closed-ended lease" in big print next to some out of this world offer - how do you know whether it's a good deal or not? What's the Difference Between Open-ended and Closed-ended leases? In short, in an open-ended lease the lessee is the one on the hook if the actual value at the end of the lease is below the residual value set at lease inception, and in a closed-ended lease it is the lessor.  Usually, your contract will be a close-ended lease, but it’s still...
Read More
Understanding Lease Ad Mailers

Understanding Lease Ad Mailers

by John Koehler Comment Closed
**This post contains affiliate links and the publisher may be compensated if you make a purchase after clicking on these links.**   With the spring thaw finally upon us (more or less), the automotive world is gearing up for another summer sales season.  While everyone assumes that direct mail is out as a marketing strategy, there are still a lot of mailers sent out, both by dealers and by manufacturers, as a way to present and promote vehicles.  And again, as we described in our first article on auto ads (which focused on online ads), presenting a lease deal is particularly advantageous in the small space available, because lease deals require relatively few numbers and text to present the offer to the largest audience. Recap: What the ad will and won't show Any lease ad, regardless of the medium used (online, mail, newspaper/magazine, television, radio, billboard, etc.) will always show a few things to define what is being offered: The monthly payment The term The amount...
Read More

Avoid Tricks, Make the Deal a Treat

by John Koehler Comment Closed
**This post contains affiliate links and the publisher may be compensated if you make a purchase after clicking on these links.**   The auto buying experience has come along way; although it is still way behind other retail transactions of any size, and also slower and less convenient than other sizable transactions - in a lot of places the process of buying real estate, with a mortgage, still takes less time than a trip to the dealership where you show up knowing the vehicle you want and are paying cash.  The most amazing thing is that while there's been substantial improvement in much of the process, the reputation of car dealers/car salespeople is still among the lowest of any profession in the United States, as well as similar nations like Canada, the United Kingdom, and Australia.* It is baffling that people would be willing to do business with people they think are going to trick them. However, the results never seem to change:...
Read More

Leasing in a World of Uncertainty

by John Koehler Comment Closed
**This post contains affiliate links and the publisher may be compensated if you make a purchase after clicking on these links.** Last time we quoted the Ancient Greeks here was on the page "Know Your Credit", and we will give a brief update about that, but this week's theme is about the Ancient Greek's classical elements: Earth, Fire, Water, Air, and the Void, and how they have each been kicking North America's behind over the past few weeks, especially this week! Earth - an extremely strong, and unfortunately deadly, earthquake, with an 8.1 magnitude, struck off the coast of southern Mexico on the evening of September 7th, and toppled hundreds of buildings. Fire - many of the western states of the U.S. as well as British Columbia, Canada have been dealing with wildfires, that have been substantially worse than predicted based on the cold wet winter that the area had, and it has caused some evacuations, with many more possible if the...
Read More
At The Dealership

At The Dealership

by John Koehler Comment Closed
**This post contains affiliate links and the publisher may be compensated if you make a purchase after clicking on these links.**   You’re at the dealership surrounded by shiny, new vehicles. Your eyes are dazzled by brilliant colors, glittering rims, and your senses are completely overwhelmed with the rush of that new car smell. You’ve done the research and know you want to lease a new car. You look up and the smiling car salesman is walking toward you. He shakes your hand and asks how he can help you. You mention the car you’ve had your eye on, and together you glide across the showroom floor. Here it is, your dream car, and you’re ready to slip into the driver’s seat and take her for a spin. The dealer takes your driver’s license, grabs the keys, and you make your way to the lot. Your fingers grip the steering wheel; its a perfect fit in your palms. The sun is shining, and...
Read More