In a slow moment, I read thru the car ads delivered to my mailbox. The Chrysler dealer wasn't mentioning price in his ads, just monthly lease payments. Then in the fine print it said "Current Chrysler lease holders and other major makers lease holders only". Translation, no deal unless you already lease a car. Which lets out most people. But, the dealer must think people like to lease cars, otherwise why advertise lease terms that most people won't be eligible for? He could have advertised monthly payments, or even (shudder) the scary asking price.
In fact, why do dealers want to lease instead of sell? On a lease deal the dealer has to find the loan to pay the car company for the car. That's trouble and money. Why not just sell the car outright? Then the customer is on the hook for financing the deal.
One reason might be the lease terms are better for the dealer. I looked at one deal, a 39 month lease with 25 cents a mile for all miles over 25,000. Figure most people rack up 20,000 miles a year, 60,000 over three years. Between the lease payments and the extra mileage charges, that lease deal would pay off the asking price of the car (pickup truck in this case) in 39 months and the dealer still owns the truck. Nice dealer markup on that deal.
My car buyers advice. 1. Buy a late model used car. 2. Buy it outright, run it til it drops.
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