Date registered: Nov 2002
Vehicle: 10 GLK 350 4Matic
Location: Sonoma County CA
Mentioned: 0 Post(s)
Quoted: 8 Post(s)
RE: Is it Legal
Leases only work for someone who always gets a new car every two or three years and never ever needs to bail out early.
Auto depreciation is a "hockey stick" with a really big drop in year one, a pretty big drop in year two and a (merely) big drop in year three. The leasing company figures the value at the end, subtracts it from new value, adds profit, taxes, etc and divides it by 36 (or 48, 39, etc). If you don't stick to their schedule you are upside down right now.
They are trying to do you a "favor", like the Jaguar example by rolling it into the new deal and avoid you writing a $15,000 check.
We have all been tempted by the low monthly payments of a lease, but most of us are way better off buying the car of our dreams the old fashioned way.[8D]
Now: 2010 GLK350 4Matic Then: 2003 C320 4Matic, 2006 E320 CDI, 2000 E320, 1994 E320, 1991 190E, 1985 300D, 1983 300D
"Eagles may soar, but weasels don't get sucked into jet engines."