Wow - credit crunch hits home

[TMagda]

Went to get the little woman a new van tonight and got a little surprise. We usually lease a Toyota Sienna every 3 years. Last lease, MSRP 36,000, 0 down, 36 month = $364 per month. This lease (same van) MSRP 35,000, 0 down = $520 per month. The difference is on the current lease TFS was allowing a $20k residual. This has been lowered to $15k. Much more realistic for them, a little harder on the consumer. I think the dealers are going to be in a tough spot with prices/financing going up at the same time demand is declining due to the economy. Don't flame me too hard for leasing - it makes sense for us because of how hard we are on the vehicle. My 3 sons (8, 6, 4) and their friends destroy the thing.

[Salvatore]

Never flame you for leasing.......just what you lease! Go buy yourself a used Suburban. Not to good on fuel economy but you will be able to steal a good vehicles for pennies on the dollar. Will make up for the gas milage! And is is somewhat of an American made vehicle....I think!

[njsteve]

Cant blame you for the leasing thing when kids are involved in the mix.

My dad used to lease all of our station wagons through the 1960's and 70's. With 5 kids and 3 dogs there was rarely an unravaged square inch of interior left when the cars got turned in after 2 years. The dealers always wondered what the hell my dad would haul in those wagons. They could never figure out if the upholstery bite marks were from the kids, or the dogs, or both.

[TMagda]

That is a great idea! She doesn't really drive that much (maybe 8,000 to 10,000 miles per year) so gas price isn't a huge issue. And we do get more than our share of snow here. I'll check it out.

[TMagda]

Forgot to add - we picked up an Irish Terrier last month just to add to the chaos. Good thing I work a lot!

[mockingbird812]

[Salvatore]

We had 4 boys and 2 Jack Russels and my wife drove Astro Vans till we could not stand them anymore. Keep working its good for me cause I am retired and I appreciate all the people that pay for my Social Security. Go out and buy a new car and drive it till it stops running. That is when you will get your moneys worth. Just keep the oil changed and the wax on the paint! Keep the wife and kids happy.

[Mr. Chevy]

I traditionally have also leased a new truck every 2 yrs.. This August my lease was up.. I went to the Ford dealer and discovered a funny thing... The residual value on the 2 year old lease truck was nearly the same as the deal I was getting on a brand new truck that was the exact same- F150 4x4 extended cab.. The lease payment for a 3 year lease was exactly the same as the purchase payment both with no money down... Plus if I purchased the truck it was a little cheaper due to Ford throwing in more incentives/discounts...

Long story short, I purchased the truck outright rather than leased. The salesman told me that the market is flooded right now w/ used leased trucks which is why Ford raised the interest on the lease payments to compensate for the losses they are taking when these trucks go to auction. He said they are getting a few grand under what the residual value is on these trucks.. Made more sense to purchase outright this time..

My dad just bought a brand new Chevy Silverado 4x4 regular cab and got a very good deal thru GM on it.. He received nearly 9 grand off the truck sticker price... Trucks just are not moving because of the high gas prices and economy right now........

Rich

[PeteLeathersac]

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Where's one of the Douglas family Pontiac Wagons?.


~ Pete

[TMagda]

I get that a a lot. I'm old enough to remember the show too!