Leasing Question
Question:
Thanks Walter Maybe I’ll do a little research myself. Always interesting to see the laws other states have. A 3-day right of rescission on an auto deal has always seemed like a good idea to me, given the high pressure sales techniques that some dealers use. That would delay the consumer’s ability to pick up the car, but three days is pretty reasonable. — Regards, Anthony Giorgianni (I prefer that you reply by posting back to the newsgroup. If you must email: remove "killspam" from reply address. This email address will be valid for a short time only.)
– Hide quoted text — Show quoted text -> Anthony, > I think there is a provision allowed in most auto contracts here that gives > the dealer some recourse but as I recall it does apply. I definitely don’t > have a reference for that though I’ll check it out. I’m pretty sure there > have to be reasonable grounds for voiding the sale, or as you said no dealer > would want to deal! Are there any dealer sales reps from Texas out there to > expand on this? > Thanks for keeping an eye out as always Anthony! > Regards, > Walter Cox
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Response:
Anthony, I think there is a provision allowed in most auto contracts here that gives the dealer some recourse but as I recall it does apply. I definitely don’t have a reference for that though I’ll check it out. I’m pretty sure there have to be reasonable grounds for voiding the sale, or as you said no dealer would want to deal! Are there any dealer sales reps from Texas out there to expand on this? Thanks for keeping an eye out as always Anthony! Regards, Walter Cox
– Hide quoted text — Show quoted text -> That applies to car sales, WC? That would really surprise me. I can’t > imagine you can return a car after using it for 3 days and void the sale, > unless I misunderstand you. > Some states give consumers a several-days’ option to back out of certain > limited types of contracts, such as home improvement. And I know some states > have tried on auto contracts, with extreme opposition from auto dealer > associations. But you’re saying cars and ANY kind of contract in Texas? Do > you have a reference for that that I can check out? It would seem to me that > if a state enacted such a rule on cars, no dealer would turn over the keys > until after the third day. > — > Regards, > Anthony Giorgianni > (I prefer that you reply by posting back to the newsgroup. If you must > email: remove "killspam" from reply address. This email address will be > valid for a short time only.) > Under Texas Law, any contract is voidable within 3 days at either party’s > option, so if you have been in Texas, you might have had an out. Of > course, > we also have gun duels in the streets here to resolve contractual > disputes, > Marshall Dillon style. > > Yes, it would have been near impossible to end your lease immediately > > after beginning it. The only thing that would have gotten you out > > would have been some major technical error in your contract, or if the > > lease company turned you down due to bad credit. In fact, most lease > > companies prohibit ending a lease anytime in the first 12 months. > > Even if you decide to end the lease later, it’ll be expensive if you > > not at least to the three-quarters point in the lease. If you had a > > nice expensive trade-in or made a large down payment, you might be > > able to end it earlier without great cost. > > If you change your mind later, I suggest you go to > > www.LeaseGuide.com/index2.htm for more information and to determine > > your options for how to end the lease. > > Al Hearn > > LeaseGuide.com > > > Actually, I have decided to keep it and not try to do a switch. I have > > > always driven Ford pick-ups (150’s and Rangers) and I just was > accustom > to > > > that "bumpy pick-up ride" that comes with driving them. The Explorer > offers > > > a much more comfortable ride that I am getting used to quickly! > > > I like to lease so I can drive a new vehicle every 3 years but the > rates > of > > > the 150’s were very high so I went with the lesser rate Explorer. I > was > > > looking at turning in the Explorer for an Escape, but I don’t think > that > > > would have been a good idea. > > > Thanks for your thoughts. > > > > It doesn’t hurt to try. If you want something more expensive it > will > > > help. > > > > > > Quick question. > > > > > > I just leased a 2003 Explorer XLT 3 days ago and I don’t think > this > > > vehicle > > > > > > is for me. How hard would it be for me to get out of it right > now > and > > > put > > > me > > > > > > in another Ford vehicle with the same dealer? Should I call Ford > > > customer > > > > > > service first? This is the 4th Ford I have leased. There are now > 150 > > > miles > > > > > > on it. > > > > > Very hard. What’s in it for them? They already sold you a car > once. > > > > > Didn’t you test drive the thing first? > > > > > -Fred > > > > > — > > > > > Outgoing mail is certified Virus Free. > > > > > Checked by AVG anti-virus system (http://www.grisoft.com).
Response:
That applies to car sales, WC? That would really surprise me. I can’t imagine you can return a car after using it for 3 days and void the sale, unless I misunderstand you. Some states give consumers a several-days’ option to back out of certain limited types of contracts, such as home improvement. And I know some states have tried on auto contracts, with extreme opposition from auto dealer associations. But you’re saying cars and ANY kind of contract in Texas? Do you have a reference for that that I can check out? It would seem to me that if a state enacted such a rule on cars, no dealer would turn over the keys until after the third day. — Regards, Anthony Giorgianni (I prefer that you reply by posting back to the newsgroup. If you must email: remove "killspam" from reply address. This email address will be valid for a short time only.)
– Hide quoted text — Show quoted text -> Under Texas Law, any contract is voidable within 3 days at either party’s > option, so if you have been in Texas, you might have had an out. Of course, > we also have gun duels in the streets here to resolve contractual disputes, > Marshall Dillon style. > Yes, it would have been near impossible to end your lease immediately > after beginning it. The only thing that would have gotten you out > would have been some major technical error in your contract, or if the > lease company turned you down due to bad credit. In fact, most lease > companies prohibit ending a lease anytime in the first 12 months. > Even if you decide to end the lease later, it’ll be expensive if you > not at least to the three-quarters point in the lease. If you had a > nice expensive trade-in or made a large down payment, you might be > able to end it earlier without great cost. > If you change your mind later, I suggest you go to > www.LeaseGuide.com/index2.htm for more information and to determine > your options for how to end the lease. > Al Hearn > LeaseGuide.com > > Actually, I have decided to keep it and not try to do a switch. I have > > always driven Ford pick-ups (150’s and Rangers) and I just was accustom > to > > that "bumpy pick-up ride" that comes with driving them. The Explorer > offers > > a much more comfortable ride that I am getting used to quickly! > > I like to lease so I can drive a new vehicle every 3 years but the rates > of > > the 150’s were very high so I went with the lesser rate Explorer. I was > > looking at turning in the Explorer for an Escape, but I don’t think that > > would have been a good idea. > > Thanks for your thoughts. > > > It doesn’t hurt to try. If you want something more expensive it will > > help. > > > > > Quick question. > > > > > I just leased a 2003 Explorer XLT 3 days ago and I don’t think > this > > vehicle > > > > > is for me. How hard would it be for me to get out of it right now > and > > put > > me > > > > > in another Ford vehicle with the same dealer? Should I call Ford > > customer > > > > > service first? This is the 4th Ford I have leased. There are now > 150 > > miles > > > > > on it. > > > > Very hard. What’s in it for them? They already sold you a car > once. > > > > Didn’t you test drive the thing first? > > > > -Fred > > > > — > > > > Outgoing mail is certified Virus Free. > > > > Checked by AVG anti-virus system (http://www.grisoft.com).
Response:
Under Texas Law, any contract is voidable within 3 days at either party’s option, so if you have been in Texas, you might have had an out. Of course, we also have gun duels in the streets here to resolve contractual disputes, Marshall Dillon style.
– Hide quoted text — Show quoted text -> Yes, it would have been near impossible to end your lease immediately > after beginning it. The only thing that would have gotten you out > would have been some major technical error in your contract, or if the > lease company turned you down due to bad credit. In fact, most lease > companies prohibit ending a lease anytime in the first 12 months. > Even if you decide to end the lease later, it’ll be expensive if you > not at least to the three-quarters point in the lease. If you had a > nice expensive trade-in or made a large down payment, you might be > able to end it earlier without great cost. > If you change your mind later, I suggest you go to > www.LeaseGuide.com/index2.htm for more information and to determine > your options for how to end the lease. > Al Hearn > LeaseGuide.com
– Hide quoted text — Show quoted text -> Actually, I have decided to keep it and not try to do a switch. I have > always driven Ford pick-ups (150’s and Rangers) and I just was accustom to > that "bumpy pick-up ride" that comes with driving them. The Explorer offers > a much more comfortable ride that I am getting used to quickly! > I like to lease so I can drive a new vehicle every 3 years but the rates of > the 150’s were very high so I went with the lesser rate Explorer. I was > looking at turning in the Explorer for an Escape, but I don’t think that > would have been a good idea. > Thanks for your thoughts. > > It doesn’t hurt to try. If you want something more expensive it will > help. > > > > Quick question. > > > > I just leased a 2003 Explorer XLT 3 days ago and I don’t think this > vehicle > > > > is for me. How hard would it be for me to get out of it right now and > put > me > > > > in another Ford vehicle with the same dealer? Should I call Ford > customer > > > > service first? This is the 4th Ford I have leased. There are now 150 > miles > > > > on it. > > > Very hard. What’s in it for them? They already sold you a car once. > > > Didn’t you test drive the thing first? > > > -Fred > > > — > > > Outgoing mail is certified Virus Free. > > > Checked by AVG anti-virus system (http://www.grisoft.com).
Response:
Yes, it would have been near impossible to end your lease immediately after beginning it. The only thing that would have gotten you out would have been some major technical error in your contract, or if the lease company turned you down due to bad credit. In fact, most lease companies prohibit ending a lease anytime in the first 12 months. Even if you decide to end the lease later, it’ll be expensive if you not at least to the three-quarters point in the lease. If you had a nice expensive trade-in or made a large down payment, you might be able to end it earlier without great cost. If you change your mind later, I suggest you go to www.LeaseGuide.com/index2.htm for more information and to determine your options for how to end the lease. Al Hearn LeaseGuide.com – Hide quoted text — Show quoted text – > Actually, I have decided to keep it and not try to do a switch. I have > always driven Ford pick-ups (150’s and Rangers) and I just was accustom to > that "bumpy pick-up ride" that comes with driving them. The Explorer offers > a much more comfortable ride that I am getting used to quickly! > I like to lease so I can drive a new vehicle every 3 years but the rates of > the 150’s were very high so I went with the lesser rate Explorer. I was > looking at turning in the Explorer for an Escape, but I don’t think that > would have been a good idea. > Thanks for your thoughts. > It doesn’t hurt to try. If you want something more expensive it will > help. > > > Quick question. > > > I just leased a 2003 Explorer XLT 3 days ago and I don’t think this > vehicle > > > is for me. How hard would it be for me to get out of it right now and > put > me > > > in another Ford vehicle with the same dealer? Should I call Ford > customer > > > service first? This is the 4th Ford I have leased. There are now 150 > miles > > > on it. > > Very hard. What’s in it for them? They already sold you a car once. > > Didn’t you test drive the thing first? > > -Fred > > — > > Outgoing mail is certified Virus Free. > > Checked by AVG anti-virus system (http://www.grisoft.com).
Response:
Quick question. I just leased a 2003 Explorer XLT 3 days ago and I don’t think this vehicle is for me. How hard would it be for me to get out of it right now and put me in another Ford vehicle with the same dealer? Should I call Ford customer service first? This is the 4th Ford I have leased. There are now 150 miles on it.
Response:
> Quick question. > I just leased a 2003 Explorer XLT 3 days ago and I don’t think this vehicle > is for me. How hard would it be for me to get out of it right now and put me > in another Ford vehicle with the same dealer? Should I call Ford customer > service first? This is the 4th Ford I have leased. There are now 150 miles > on it.
Very hard. What’s in it for them? They already sold you a car once. Didn’t you test drive the thing first? -Fred — Outgoing mail is certified Virus Free. Checked by AVG anti-virus system (http://www.grisoft.com).
Response:
It doesn’t hurt to try. If you want something more expensive it will help.
– Hide quoted text — Show quoted text -> Quick question. > I just leased a 2003 Explorer XLT 3 days ago and I don’t think this > vehicle > is for me. How hard would it be for me to get out of it right now and put > me > in another Ford vehicle with the same dealer? Should I call Ford customer > service first? This is the 4th Ford I have leased. There are now 150 miles > on it. > Very hard. What’s in it for them? They already sold you a car once. > Didn’t you test drive the thing first? > -Fred > — > Outgoing mail is certified Virus Free. > Checked by AVG anti-virus system (http://www.grisoft.com).
Response:
Actually, I have decided to keep it and not try to do a switch. I have always driven Ford pick-ups (150’s and Rangers) and I just was accustom to that "bumpy pick-up ride" that comes with driving them. The Explorer offers a much more comfortable ride that I am getting used to quickly! I like to lease so I can drive a new vehicle every 3 years but the rates of the 150’s were very high so I went with the lesser rate Explorer. I was looking at turning in the Explorer for an Escape, but I don’t think that would have been a good idea. Thanks for your thoughts.
– Hide quoted text — Show quoted text -> It doesn’t hurt to try. If you want something more expensive it will help. > > Quick question. > > I just leased a 2003 Explorer XLT 3 days ago and I don’t think this > vehicle > > is for me. How hard would it be for me to get out of it right now and > put > me > > in another Ford vehicle with the same dealer? Should I call Ford > customer > > service first? This is the 4th Ford I have leased. There are now 150 > miles > > on it. > Very hard. What’s in it for them? They already sold you a car once. > Didn’t you test drive the thing first? > -Fred > — > Outgoing mail is certified Virus Free. > Checked by AVG anti-virus system (http://www.grisoft.com).
Response:
What does leasing have to do with being able to drive a new vehicle every three years? You can do that just as well if you buy outright or with a loan. By leasing, you merely are killing yourself with interest charges on the continual residual value that you always hare carrying and never repaying. Good luck with your new Explorer, though, no matter how you acquired it. — Regards, Anthony Giorgianni (I prefer that you reply by posting back to the newsgroup. If you must email: remove "killspam" from reply address. This email address will be valid for a short time only.)
– Hide quoted text — Show quoted text -> Actually, I have decided to keep it and not try to do a switch. I have > always driven Ford pick-ups (150’s and Rangers) and I just was accustom to > that "bumpy pick-up ride" that comes with driving them. The Explorer offers > a much more comfortable ride that I am getting used to quickly! > I like to lease so I can drive a new vehicle every 3 years but the rates of > the 150’s were very high so I went with the lesser rate Explorer. I was > looking at turning in the Explorer for an Escape, but I don’t think that > would have been a good idea. > Thanks for your thoughts. > It doesn’t hurt to try. If you want something more expensive it will > help. > > > Quick question. > > > I just leased a 2003 Explorer XLT 3 days ago and I don’t think this > > vehicle > > > is for me. How hard would it be for me to get out of it right now and > put > > me > > > in another Ford vehicle with the same dealer? Should I call Ford > customer > > > service first? This is the 4th Ford I have leased. There are now 150 > miles > > > on it. > > Very hard. What’s in it for them? They already sold you a car once. > > Didn’t you test drive the thing first? > > -Fred > > — > > Outgoing mail is certified Virus Free. > > Checked by AVG anti-virus system (http://www.grisoft.com).
Response:
> : I’m hoping someone can answer a question for me about leasing. I’ve heard > : that you should set a "selling" price first, as if you were purchasing > : the car and then tell the dealer that you want to lease the car. > : Does this mean that you are leasing the car for the difference between > : the "selling" price you just set and the residual value of the auto?
Ralph Nader has a "Reality Checklist" worksheet to help make leasing decisions. The Providence Journal (RI) last Sunday said it is available FTP at <gopher.essential.org>. Or send 1.50 and a SASE to Reality Checklist, PO Box 7648, Atlanta, GA 30357. It is helpful in learning the lingo, and in calculating exectly what deal you are entering into… Good luck.
Response:
: I’m hoping someone can answer a question for me about leasing. I’ve heard : that you should set a "selling" price first, as if you were purchasing : the car and then tell the dealer that you want to lease the car. : Does this mean that you are leasing the car for the difference between : the "selling" price you just set and the residual value of the auto? That’s correct, negotiate the selling price *BEFORE* you tell the dealer how you want to pay. In essence, *a lease is just a loan*; you borrow the *full* negotiated selling price (the dealer gets a check for this amount on day #1) and the payments are calculated such that at the end of the lease term the unpaid balance is equal to the "residual". The calculation is *exactly* the same as an ordinary loan with a "balloon" final payment (balloon = residual). : Don’t the dealers make a contribution which is subtracted from the : MSRP to come up with a standard capitilized cost ((MSRP minus : dealer contribution minus down payment) – (residual value))? If : you negotiate a selling price below the "standard"(MSRP minus : dealer contribution), will they use that price as the starting : point? How do you know you’re not negotiating a price higher than : that? The "dealer contribution" is simply a discount. Most advertised lease deals presume a (small-ish) dealer contribution; but, you can almost certainly get a bigger discount by negotiating PRICE *before* discussing a lease. The "cap cost" is just the initial loan balance (MSRP – discount – downpayment). You can calculate lease payments on a "normal" financial calculator by plugging-in: Present value = "cap_cost" = (cash_price – downpayment) Future value = -(residual) = -(%_residual * MSRP) As you can see, all the lease-speak is just so much mumbo-jumbo designed to confuse the buyer. Once you understand the lingo, you’ll discover that a lease isn’t anything "special" — it’s just another financing option. (NOTE: some states *do* handle sales taxes differently for leases vs "ordinary" loans.) a lease is just a loan, Mark
Response:
Hi Everyone! I’m hoping someone can answer a question for me about leasing. I’ve heard that you should set a "selling" price first, as if you were purchasing the car and then tell the dealer that you want to lease the car. Does this mean that you are leasing the car for the difference between the "selling" price you just set and the residual value of the auto? Don’t the dealers make a contribution which is subtracted from the MSRP to come up with a standard capitilized cost ((MSRP minus dealer contribution minus down payment) – (residual value))? If you negotiate a selling price below the "standard"(MSRP minus dealer contribution), will they use that price as the starting point? How do you know you’re not negotiating a price higher than that? Sorry if this was unclear. Hopefully, you get the general drift of my questions? BTW, is there a leasing FAQ somewhere? Thanks, Mitch — Mitch Javeline phone: (908)632-2777 Cray Research Superservers. Inc. fax: (908)603-7745 120 Wood Avenue South
Response:
I wish to lease a new Acura Integra. I currently have a Nissan Altima that I’m still paying for, can I trade it in towards a new car lease?
Response:
Ask the dealer about it.
Response:
I wish to lease a new Acura Integra. I currently have a Nissan Altima that I’m still paying for, can I trade it in towards a new car lease?
Response:
Ask the dealer about it.
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