Quote:
Originally Posted by Evergreen6
It's not a lease if you have equity, because you don't actually own the car. Lexus does, or whomever their financial intermediary is.
If you lose your job, leave your job, or only move 9 cars/month, you are still liable for the lease.
At the end of the the lease, you either give back the car as agreed, or you buy the car for whatever the residual value was agreed to be at the lease inception, or worse, it might be an open-ended lease where the residual is determined at the end of the lease. Try buying a car when you have no job- they won't give you a loan.
I'd pass, all day long. They're asking you to assume a lot of risk, in exchange for free advertising on their behalf.
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You can have equity in a lease. You only lose equity if you turn the car in. I can trade it in one day before the lease expires and retain my equity. I have my customers do it all the time.
In regards to sales. I've been doing it for a while. I was the Infiniti store up the street for a year an a half and averaged 15 cars a month. The lexus dealer I am now is number one in the state and has so much more volume than the infiti did. Sold about 150 to 180 new and used at infiniti. This Lexus dealer does 280 to 300 with the same amount of sales people.
The group I work for doesn't just fire people. You have to either do something incredibly stupid or sell less than 6 cars for 3 months straight. So I am not too worried about that.