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re: Pros and Cons of Leasing v Buying a Vehicle

Posted on 1/29/19 at 12:11 pm to
Posted by PearlJam
NotBeardEaves
Member since Aug 2014
13908 posts
Posted on 1/29/19 at 12:11 pm to
quote:

My point was that’s false, as a lease or purchase (financed) works the same way- the bank buys the car and the dealership gets a commission on the interest rate.
Correct, but the bank/dealership retains ownership in the lease and restrictions to persevere it's value and they then make money again when it is sold after the lease expires. My point was the primary financial advantages for a lease don't typically run to the consumer (although there are some circumstances that they do).
quote:

there’s no extra incentive either way for the dealership to push a customer in one direction. Dealership is paid agreed upon price of the car by the lender. The dealerships #1 goal is for the customer to drive off in a car, be it leased, financed or paid in full.
I don't disagree with this statement, with the exception of the above, if the only comparison is the means of purchasing a new car. My comment was broader and was taking into account the op's circumstances as well.

quote:

If buyer is purchasing cash, or using independent financing, the dealer may be inclined not to discount the car as much because they aren’t making money on the back end.
you are hung up on this point. No one has disagreed with it.

quote:

His friend/neighbor that’s a former salesman has no reason to give him advice based on an ulterior motive
I don't know his friends motivation and don't care. It doesn't change the fact that it isn't good advice based on The op's circumstances. I didn't intend to imply any ulterior motive.

This post was edited on 1/29/19 at 1:01 pm
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