Someone Explain This To Me....

[Brett]

I know it may be a simple answer.... But when a Car company sells a car on a lease, Say like $399 a month is one of the more common ones you see advertised.... How does a car company make money off a lease? I mean the car to make costs money, the dealership in turn buys the car for a ton of money and then only makes money for 24 months off the car on a normal lease, so in turn how can they make money off it? Someone break this down for me because I have wondered this for a while.

[Ran]

Mark-ups on car production costs are outrageous first of all. Second, after the lease it up, they'll usually sell the car as used or pre-owned anyway. So it's kind of a double deal.

[Nemesis]

DAMNIT BERT YOU NEED TO MOD YOUR S2K

[Brett]

So they count on making some money of course in the lease and I guess HOPE for over mileage, wear and tear fees and then when they sell it they make it again. Okay gotcha

[Brett]

DAMNIT BERT YOU NEED TO MOD YOUR S2K

I wish I had the money, But everything for this car is so damn expensive, Was much easier when I had the civic...LOL

[Nemesis]

I wish I had the money, But everything for this car is so damn expensive, Was much easier when I had the civic...LOL


Option 1: Steal from Pat


Option 2: Get in the zone

[Brett]

Pat doesnt have a S2k anymore. He hasnt in about a month and half maybe 2 months.

Auto Zone? Uhhh I THINK NOT!! LOL

[Nemesis]

Pat doesnt have a S2k anymore. He hasnt in about a month and half maybe 2 months.



:eek: what happened?! Whats he rollin round these days?

[Ran]

Pat doesnt have a S2k anymore. He hasnt in about a month and half maybe 2 months.WTF?

[Leisa]

:eek: what happened?! Whats he rollin round these days?


Audi A4

[Brett]

:eek: what happened?! Whats he rollin round these days?

Youd dumb son of a *****, he bought a Audi A4, 2005 I think it was. Nice too. I will miss rollin with my lil deaf buddy but what can ya do..LOL

[Ran]

Youd dumb son of a *****, he bought a Audi A4, 2005 I think it was. Nice too. I will miss rollin with my lil deaf buddy but what can ya do..LOLPat got an Ouchi? Wow, didn't see that coming.

[4dmin]

pat got a 2.0t? i hope so :goodjob:

[Kevykev]

Enterprise Rent's cars then when they hit a certain mileage the sell em @ market or slightly below market value.

Even if they're ragged out they can be cleaned fixed!

Follow that concept!

Rent your s2k to IA members for premium rates, hope they keep it up and make some good money, Afterwards, sell it - That's 2-3 ways to make money on 1 investment.

With leases, there are also penalties for exceeding the mileage (as everyone knows) Is sums of $$$ due at the table when leases are originated.

[civic95]

They make money off the lease, and when they sell it certified pre-owned. If you do the math on a lease you will always come out better buying the car, and selling it yourself in 2-3 yrs (or lease equivalent).