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      12-19-2012, 08:05 AM   #14
pimp4cheddar
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Drives: BSM X3M
Join Date: Jul 2011
Location: USA

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Quote:
Originally Posted by lolwut View Post
I believe what he's referencing is essentially your buy-out amount may be worth less than the vehicle's market value.

You typically need to be paying some pretty high monthly payments for this to occur however, and typically people get into a lease with very low monthly payments, so by the time the lease is up the opposite is true, you typically owe more for a buyout than what the car is worth.

or he could be talking about what ally and some other leasing companies do, which basicly offer incentives toward a new lease when returning an existing one.

I had a 2011 CTS-V and essentially received $6500 cost cap reductions on my 2012. All I had to pony-up in the end was tax and $1500 in cash to offset a 10K payout difference on the 2011. It was a sweet deal, and I suppose it could be seen as 'trading in' the 11 for the 12.

Ah...makes sense.


Just curious...I've never leased...but I'm thinking of actually leasing all future cars as I never keep a car past 3 years lol... I'd rather rent a car for cheaper, have it under warranty and be able to not worry about market value come trade in time.

What's a "cost cap reduction"?
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