How to cash in on 'early return' car lease deals

By Herb Weisbaum, The ConsumerMan
Everyone who leases their vehicle knows what happens if they return it before the end of the contract –you get hit with an early termination fee. That is, unless the manufacturer or dealer wants you to get out of that lease and into another.

“Both car companies and dealers want to keep you in their product,” said Jeremy Anwyl, vice chairman of Edmunds.com. “This is really a cheap way for them to hold onto a customer, and that’s obviously very important.”

These so-called “pull-ahead” lease offers are fairly common. They generally take place about 90 days before the lease ends.

Manufacturers use them to better manage their inventory, according to Scott Hall, executive vice president of Swapalease.com, an online car-lease exchange service.

“If they’re trying to get rid of excess vehicles, pulling in leases ahead of schedule is a good way to keep their customers and possibly get them into the models they need to move,” Hall explained. “It could also be to get certain types of vehicles to auction at a more attractive time of year.”

For example, they don’t want a bunch of convertibles to come back in the middle of winter because they’re harder to resell. So they might try to pull them in ahead of schedule.

There are two types of pull-ahead offers: those offered by the manufacturer (or its finance company) and those from the dealer.
“If the car company is funding it, then it’s really doesn’t cost the consumer anything,” Anwyl explained. “They’re basically eating the cost of paying for those last few months. So it’s an extra incentive to the consumer and it could make a lot of sense.”

Jack Gillis, author of The Car Book 2013, urges caution if the dealer is offering to get you out of that lease early.

“Chances are the vehicle is worth more than what they estimated in your ‘residual value’ notice,” Gillis said. “This happens when the used car market is hot and used car prices are high, as it is right now.”

Clearly, there’s no obligation to accept the offer. You need to run the numbers and if they aren’t appealing, keep the current lease.
If the vehicle is worth more than the residual value, you may want to wait until the end of the lease, because you’ll probably get a better deal on the new lease.

Or maybe you should buy that next vehicle
If your goal is to save money, leasing is not the way to go. In fact, consumer experts say it can be significantly more expensive than buying.

“People who lease think it’s a really good deal because the monthly payments are lower. In reality, they typically pay more,” said Anthony Giorgianni, associate finance editor at Consumer Reports.

For its January issue, Consumer Reports Money Advisor ran the numbers for a 48-month lease versus a 48-month loan on a new vehicle with a negotiated price of $30,520. The editors assumed 10 percent down, a $500 acquisition fee for the lease, and average depreciation.

Because the monthly lease payment was significantly lower – $348 vs. $659 – the total outlay in cash after four years was nearly $15,000 less than what the buyer paid. But the buyer had a vehicle worth $15,494 at the end of the loan.

In this example, leasing was $559 more ($19,767 vs. $19,208) and that does not include the end-of-lease disposition fees (such as excess mileage) which could be hundreds of dollars more.

Because of this price differential, Gillis advises buying your vehicle when it comes off lease rather than getting into the perpetual cycle of leasing a new vehicle every few years.

“After all, the key to finding a good used car is to know its history and you’ve been driving this car, so you know its history,” he said. “Furthermore, there’s a chance that the residual value is less than the actual value of the car, which means you can get a bargain.”

You can find the market value for that vehicle at sites such as Kelly’s Blue Book or Edmunds.

“If the vehicle is in good shape and has served you well, and the market value is more than the residual value – buy it and stop leasing,” Gillis advised. “Offer less than the residual value. Chances are high that the dealer will take your offer as that saves them the refurbishing and marketing costs to resell the vehicle.”

How do I find out about these early-returns offers?
Pull-ahead offers aren’t really marketed. You won’t see ads for them on TV or in the newspaper. You just get a call from the dealer or a letter from the finance company about three month before the lease is up.

They’re more common at the end of the year when manufacturers are trying to hit their quotas, but they come and go throughout the year.

Right now, Mercedes-Benz “4 Payment Loyalty Accelerator Program” is available on dozens of models. Ford has a “2 Month early Bird Program” for some Mercury lease customers. Porsche also offers early return incentives for some vehicles.

Edmunds.com lists pull-ahead deals on the Incentives and Rebates page. Click on a vehicle and look in the “other” column.
Here are a few tips from Edmunds for anyone who receives a lease pull-ahead offer:

Read the offer carefully so you understand all the terms, conditions and possible fees. Consider the mileage factor: Are you under the limits of your current lease or over it? What's the annual mileage on the new lease? Ensure that the drive-off fees from the first lease will carry over to the new lease. Contact your lease company and ask for the current "buyout amount" for your car. Compare that with the trade-in price. If value is higher than the buyout, you have equity in your car and you will be in a strong position to negotiate good terms on your next vehicle.

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Just like cash in on 'early return of car leasing deals

By Kraut white tree, the ConsumerMan
Who your vehicle knows leasing, what happens when they can get it before the end of the contract-Scouting back with an early termination fee hit. That is, unless the manufacturer or retailer wants to get out of this contract and in another.

"Car companies and dealers keep want in their product," said Jeremy Anwyl, Deputy Chairman of the Edmunds. "This is really a cheap way for a customer to keep, and that is of course very important."

These so-called "Pull-ahead" leasing deals are widely used. You will find instead of usually around 90 days before the end of the rental.

Manufacturers use them better manage their inventory according to Scott Hall, executive Vice President of Swapalease.com, an online-auto-leasing-Exchange service.

"If they try to get rid of excess vehicles, prematurely withdraw leasing contracts is a good way to keep their customers and maybe get in the models, they need to move," said Hall. "It might also get certain types of vehicles for auction and a more attractive time of the year."

You want to come back for example no bunch of convertibles in the middle of the winter, because they are harder to resell. So they could try to pull them earlier than planned.

There are two kinds of pull-ahead offered: offered by the manufacturer (or the finance company) and from the dealer.
"If the car company, financing, then it really is not the consumer nothing cost," Anwyl said. "they are basically the cost of payment for these last months food. So it is an extra incentive for consumers and it could make a lot of sense."

Jack Gillis, author of the car book 2013 calls for caution, if the dealer you get out of this lease early offers.

"Chances are that the vehicle is more valuable than what they estimated in your message of"Residual value"", Gillis said. "This happens when the used car market is hot and used car prices are high, as it is just."

Clearly, there is no obligation to accept the offer. For them to do the numbers, and if they are not speaking, keep the current lease.
If the vehicle is worth more than the residual value, you should wait until the end of the lease term, as you probably get a better deal on the new lease.

Or maybe you should buy the next vehicle
If your goal is to save money, the leasing is not the way to go. In fact, consumers say it can be significantly more expensive than buying experts.

"Think people who lease, it is really a good deal, because the monthly payments are lower. "In reality, they usually more, figures", said Anthony Giorgianni, Associate Finance editor at consumer reports.

For the January issue, consumer reports money Advisor ran the numbers for a 48-month lease compared to a 48-month loan on a new vehicle with a negotiated price of $30.520. The editorial staff assumes that 10 percent is a down $500 purchase fee for the cession and average depreciation.

Since the monthly leasing rate was significantly lower $348 vs. $659 total consumables in cash after four years of almost $15,000 worse than what the buyer paid. But the buyer had a vehicle valued at $15.494 at the end of the loan.

In this example, leasing was $559 more ($ 19.767 vs. $19.208), and this includes not the end of lease disposition fee (such as excess mileage) could be hundreds of dollars more.

Because of this price difference Gillis advises to buy your vehicle, if it comes about, from leasing, rather than getting into the eternal cycle of leasing a new vehicle every few years.

"Because the key for a good used car is to see, to know, its history and you have been driving this car so that you know its history," he said. "In addition, there is a chance, the residual value is less than the actual value of the car, which means that you can make a bargain."

You can find the market value for this vehicle at sites like Kelly Blue book or Edmunds.

"If the vehicle is in good condition and has done good service to you, and the market value more than the residual value is - buy it and stop leasing," Gillis advised. "Less than the residual value offer. Chances are high that the merchant will accept your offer, such as the renovation and marketing costs saving them to sell the vehicle."

How do I know of these early returns offered?
Pull-ahead deals are not really marketed. It will not show for them on television or see in the newspaper. You will receive only a call from the dealer or a letter from the finance company about three months before she lease has expired.

They are at the end of the year when manufacturers try to beat their quotas, but they come and go in the course of the year more widely.

Right now, Mercedes-Benz "4 payment Accelerator loyalty program" is available on dozens of models. Ford has a "2 month Early Bird program" for some mercury-leasing customers. Porsche also early return provides incentives for some vehicles.

Edmunds lists pull-ahead deals on the side of incentives and discounts. Click on a vehicle and look in the "other" column.
Here are a few tips from Edmunds for who receives a pull-ahead lease offer:

Read the offer carefully so that you understand all terms, conditions and possible fees. Consider the mileage factor: they are subject to the limits of your current lease or over it? What is the annual mileage on the new lease? Make sure that the fees with the launch of the transmitted first lease on the new lease. Contact your leasing company and questions after the current "buyout amount" for your car. Compare that with the trade price. If higher than the buyout have value equity in your car, and you are to negotiate in a strong position, good conditions for your next vehicle.

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Alfa Romeo make his US return after 18 years

Paul A. Eisenstein, the Detroit Bureau - 3 days

Built it already cars of the time joined Henry Ford of his first moving assembly line, but despite a long and proud history, both on the road and on the track, you have never heard of Alfa Romeo and almost certainly may never have dangers.

The Italian manufacturer of smooth small sports car drove Dustin Hoffman in "The Graduate", abandoned Alfa Romeo, the US market in 1995, the victim of the endemic quality problems and rapidly shrinking sales. But with the parent, who is now married to Detroit Chrysler, Alfa Fiat SpA getting ready, a long-awaited comeback to stage.

A completely new supercar which is Alfa Romeo 4 c, made his debut at the Geneva Motor Show less than a month out and roll into U.S. showrooms make again before year's end. If everything according to plan is hoping Italian manufacturers add quickly three models and target more established European luxury of Marques such as BMW, Jaguar and Audi.

The message is loud resonance, in a small but dedicated group of "Alfisti", have watched with disappointment, as the Fiat subsidiary repeatedly postponed plans for a comeback. Indeed, Fiat CEO Sergio Marchionne made that one of the key elements of his turnaround plan, after the maker of Chrysler, which regained after his bankruptcy in 2009.

But while most of the Chrysler revival strategy proceeded according to plan, Alfas return soon fell behind schedule, and during a Media Roundtable held, while Marchionne indicated the North American International Auto show last month, still problems with the drive train for the 4 C. planned a further delay, finding.

There is not only the right feel and sound that laments Chief Executive, said that if Alfa could not come up with a "Wop engine", it does not come back in the States. Apparently motivates the troops. Nearly two weeks later, plans for the 4-C were completed.

"To bring back this company Alfa will be a one-off thing," Marchionne cautioned. "We are not twice."

Not only are she part of the Fiat Empire - today includes Fiat and Chrysler brands but also as Maserati and Ferrari Alfa Romeo debuted on June 24, 1910, the product of a consortium of French and Italian Nicola Romeo. The name was short for Anonima Lombarda Fabbrica Automobili, or the Lombard automobile factory.

The company quickly a good reputation for his performance in the Motorsport and his distinctive, street-legal sports car set up. But their fortunes a roller coaster went before Fiat Alfa in 1986 took over. Things have done much better since then, and many industry observers believe that the return to the United States could be moving Alfas make-it-or-break it. If the strategy is successful, Alfa hopes more than triple sales to 500,000 in the next few years, the U.S. market, which is almost 20% of the volume.

Fiat has offered a first look at the new Alfa 4 C supercar, three ahead pictures, closely first, presented to the 2011 Geneva Motor Show - on the concept car and goes too quickly to an assortment of awards in Europe win. Comes the newest Kudo most popular of Britain's what car? Magazine, which recently named "The most exciting car 2013."

Alfa Romeo is aiming for the "tip of the spear", echoed auto analyst Joe Phillippi, AutoTrends consulting, staging his return with a striking "Halo car" that is lost in the crowd are not. It is track-ready technologies including an ultra-light carbon fiber chassis and a four-cylinder turbo engine, that Alfa notes as one of the most powerful feature in the segment, at least by the power / weight ratio, a more accurate measure of performance than raw horsepower.

Although the manufacturer stores important information for the Swiss debut, reports which will be Alfa Romeo 4 c probably somewhere between $75,000 and come in $100,000 and "for this price, I am sure that their band expectations modest," said beat industry main source River, "even though she probably will do."

In the longer term, the Fiat subsidiary more product expand their reach - including an affordable sports car development in a new partnership with Mazda Motor agreed will be added. The Japanese manufacturer will use its version of this 2-seater to replace ageing of the MX-5 Miata model.

Part of the challenge for Alfa will be in an increasingly crowded and competitive market - a challenge that are similar to due as the more mainstream Fiat brand that got off to an extremely slow start, after his late 2011 in the States back.

Like Fiat, Alfa must rebuild a reputation tarnished by the poor quality of the products that it in the 1980s and 90s rolled out. "they have patterns, passed," said analyst main source River, "and they can finish right fit, and refinement to show." There are too many other options otherwise available.

The fact that a generation of American buyers had little experience with Alfa is good news and bad for the brand comeback is planned. It will take some creative marketing and lots of dollar awareness to rebuild, companies recognize officials. On the other hand, hip, young and affluent buyers who coveted the brand last problems will dominate largely little direct Alfas.

A foothold in the United States the breakthrough, which needs the Alfa could recover. But if we do not? Senior Volkswagen officials, including CEO Martin Winterkorn, desire open the Italian brand. At the moment Fiat Chief Marchionne insists, is not to sell Alfa. And if it succeeds in the 4 c need not be. But falls flat, the revival of US well, all bets are off.

Copyright 2013 the Detroit Bureau

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Toyota to return NA full production in Sep.

ERLANGER, Kentucky - Toyota said on Thursday that it expected faster than you expected in North American production in September, following parts shortages on the March earthquake and tsunami in Japan returned full.

Toyota Motor Corp., said the North American production is currently at 80% on average. Eight of his 12 North American built models again said the automaker in full production on 6 June.

The 11 March earthquake and tsunami damaged auto parts plants in the north-eastern Japan and cut makes to other interruption in the supply of the car and truck parts to automakers around the world.

Toyota, with Honda Motor Co., was the hardest hit one. It cut to reduce production to about 30% of normal in May of factories for several days in idle or their hours. He warned traders to expect the lack of some models in the summer.

Toyota full production of the Avalon large car, Camry Corolla compact, medium-sized car, matrix, Highlander SUV car, Sequoia of large SUV, Sienna minivan and Venza crossover vehicle has taken up again, said the company.

Lexus RX350 SUV, Toyota RAV4 small crossover and tundra and Tacoma pickups are not in full production in June return.

Focus the automakers will, where as much production as possible after September, said Steve St. Angelo, executive Vice President of Toyota's North American manufacturing, said in a statement.

The automaker has 13 factories in North America, which employ 25,000 people. Toyota has said that it is laid off any employees.

Copyright 2011, the associated press. All rights reserved. This material may not be published, broadcast, rewritten or distributed.

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