Does dealer benefit from a lease return?
09-08-2010, 07:10 PM
#1
Does dealer benefit from a lease return?
My '08 cayman lease is coming to a close shortly, & I am in the process of locating my next, this time a 997. The most convenient dealer to drop off my lease return, is not where I will be getting the next one.
If the dealer derives any benefit from my lease return, I would prefer to do so where I will likely get the next one. The cayman is a candidate for a CPO, i.e. no body work or mechanical issues, popular color and options and reasonable miles (30k) for a 3yo car.
Thanks.
If the dealer derives any benefit from my lease return, I would prefer to do so where I will likely get the next one. The cayman is a candidate for a CPO, i.e. no body work or mechanical issues, popular color and options and reasonable miles (30k) for a 3yo car.
Thanks.
09-08-2010, 10:09 PM
#3
Three Wheelin'
Dealer may have an obligation to keep the car, and as there is a reasonably large number of mid-engines sitting out there, they probably won't benefit much if they don't want it. As John said, check with the dealer you plan to buy from--otherwise drop it where you got it from (if possible).
09-09-2010, 01:35 AM
#4
Racer
Join Date: Oct 2003
Location: Houston, TX
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The leased car belongs to the leasing company, such as Porsche Financial. A car dealership wears two hats: 1) the finance company's agent and 2) a seller of automobiles.
Wearing hat 1, it writes loans that PFS will buy from the dealer (or writes loans on behalf of PFS), write leases, etc. Hat 1 also involves servicing a lease, such as taking the car on lease return and inspecting it.
Hat 2 makes money by selling new and used cars.
When you a return a leased car, you can return it to any dealership because all wear Hat 1 as PFS's agent.
The dealer, wearing hat 1, can either (1) let PFS's remarketing arm pick up the car and most likely auction it; or (2) do a book transaction from PFS (via the dealer wearing hat 1) to the dealer wearing hat 2. Basically, when you return a leased vehicle to the dealership, the receiving dealership gets 1st choice on whether to keep the car for its inventory or let PFS take it. If its a nice car and the dealer thinks it can sell it, it'll keep it and pay for it (actually, just add it to the floorplan loan provided by PFS). If not, it'll let the finance company take it off the lot. This also happens to trade-ins.
So the benefit is that your dealer gets 1st crack at a nice car. It may be marginally cheaper since transportation is out.
Wearing hat 1, it writes loans that PFS will buy from the dealer (or writes loans on behalf of PFS), write leases, etc. Hat 1 also involves servicing a lease, such as taking the car on lease return and inspecting it.
Hat 2 makes money by selling new and used cars.
When you a return a leased car, you can return it to any dealership because all wear Hat 1 as PFS's agent.
The dealer, wearing hat 1, can either (1) let PFS's remarketing arm pick up the car and most likely auction it; or (2) do a book transaction from PFS (via the dealer wearing hat 1) to the dealer wearing hat 2. Basically, when you return a leased vehicle to the dealership, the receiving dealership gets 1st choice on whether to keep the car for its inventory or let PFS take it. If its a nice car and the dealer thinks it can sell it, it'll keep it and pay for it (actually, just add it to the floorplan loan provided by PFS). If not, it'll let the finance company take it off the lot. This also happens to trade-ins.
So the benefit is that your dealer gets 1st crack at a nice car. It may be marginally cheaper since transportation is out.
