USED-CAR LEASING ON THE RISE, BUT PITFALLS ABOUND
LOS ANGELES — Car dealers have found a brand brand brand new approach to distinction from people with money trouble: leasing them hand-me-down vehicles.
The deals are pitched to customers as the cheapest approach to expostulate a used automobile off the lot, with the combined benefit of an easy shun for those who can’t keep up with the payments.
Few business are told about the advantages on the other side of the trade.
Leases can concede dealerships to avoid interest-rate caps, and there are fewer monetary avowal manners than with a required automobile loan.
The dealers get a taxation advantage: They can compensate income taxation on the sale over time, instead of in a pile total upfront.
When payments are missed, process is a snap since the dealer still owns the car.
And lease terms, distinct auto-loan payments, cannot be marked down by a bankruptcy justice judge.
“In the final couple of years, this has unequivocally taken off,” pronounced Al Lentsch of Burnsville, Minn., who helps dealerships set up and run leasing programs. “Dealers are eventually getting used to the thought that what we do is legal.”
Traditionally, the auto-leasing business focused on people with good credit who wish mint cars though don’t wish to part with a lot of cash, or who prefer not to keep a automobile more than a couple of years.
Used-car leasing targets people with lower credit and equates to who are only scraping by though need a automobile to get to work.
car – Yahoo! News Search Results
LOS ANGELES — Car dealers have found a brand brand brand new approach to distinction from people with money trouble: leasing them hand-me-down vehicles.
The deals are pitched to customers as the cheapest approach to expostulate a used automobile off the lot, with the combined benefit of an easy shun for those who can’t keep up with the payments.
Few business are told about the advantages on the other side of the trade.
Leases can concede dealerships to avoid interest-rate caps, and there are fewer monetary avowal manners than with a required automobile loan.
The dealers get a taxation advantage: They can compensate income taxation on the sale over time, instead of in a pile total upfront.
When payments are missed, process is a snap since the dealer still owns the car.
And lease terms, distinct auto-loan payments, cannot be marked down by a bankruptcy justice judge.
“In the final couple of years, this has unequivocally taken off,” pronounced Al Lentsch of Burnsville, Minn., who helps dealerships set up and run leasing programs. “Dealers are eventually getting used to the thought that what we do is legal.”
Traditionally, the auto-leasing business focused on people with good credit who wish mint cars though don’t wish to part with a lot of cash, or who prefer not to keep a automobile more than a couple of years.
Used-car leasing targets people with lower credit and equates to who are only scraping by though need a automobile to get to work.
car – Yahoo! News Search Results