By JOE SPIRIO
The 2000 model year has been a bit wacky and unpredictable right from the get-go.
Most of us who usually have a handle on whats happening in the world of Leasing & Financing continue to observe unprecedented maneuvers by automakers who's programs have swung widely between Leasing & Financing incentives.
Daimler Chrysler in an effort to dial down incentives recently removed rebates on selected models. As a result in June sales dropped 4% from May and 11.5% from June to July. This drop in sales actually prompted some dealers to stop ordering some of their best selling products untill incentives were in place to inspire buyers to buy.
It has become apparant that consumers expect rebates and buy fewer vehicles when rebates are not offered. WOW WHAT A REVELATION , LIKE ITS ROCKET SURGERY!
In an effoert to regain market share and sell a lot of MINIVANS Daimler Chrysler has increased GRAND CARAVAN rebates 3,000 %,
from ZERO TO $3,000.
OR %1,000. REBATE & .9% FINANCING UP TO 36 MONTHS
OR NO REBATE & .09%(THAT LESS TAN 1/10 OF 1%)
UP TO 36 MONTHS
1.9% UP TO 48 MONTHS & 2.9% UP TO 60 MONTHS
WHEN COMPARING LARGE REBATES TO LOW INTEREST FINANCING KEEP THIS SIMPLE RULE IN MIND.
If you finance the majority of the vehicles cost ,the low rate is more advantages.
Select the cash rebate if you plan to put down 40% or more.
In my opinion the best of both worlds is a large rebate and a good lease program.
Manufacturers have been testing the sale ability of their products in the financing realm predominantly due to the burdens associated with off lease vehicles.
In a nut shell almost every bank in the last three years took their lumps by over estimating lease end vehicle values and taking big losses at action. Current day lease programs make more modest lease end value forcasts which have had the effect of raising lease payments unless they are combined with other incentives.
If all this is begining to seem like a Publishers Clearing House scenario you are very perceptive which reminds me of an old advertising adage " THE BOLD PRINT GIVE-ITH AND THE FINE PRINT TAKE-ITH AWAY".
Read all advertisements completely carefully and DO THE MATH.
AS ALWAYS IF I CAN HELP YOU IN ANY WAY YOU CAN REACH ME AT auotleasing@longisland.com