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To: PeterPrinciple
What would be the advantage of leasing?

The advantage is to the manufacturer and patent holder. They get rich with leases. Selling isn't good for that bottom line.
Remember that next time someone tells you that it's a great idea to lease a car. :-)

8 posted on 07/15/2005 5:08:53 PM PDT by speekinout
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To: speekinout
For an auto the advantage is to the lessor, not always the manufacturer. We usually think of the manufacturer as being the lessor, but that is not always the case.

The manufacturer actually sells the car to the lessor, usually at a price well below what a buyer would pay due to the relationship between the parties. Third party lessors are very common, and they get a serious discount. In fact, they buy for well below the current "employee discount price" in most cases.

Now, in this particular case, since the manufacturer is going to be the only lessor, they will be the beneficiary. And the reason for doing it is simply cash. They hope that they will be able to get lease payments that exceed the potential sale price by an amount greater than the future value of the potential sale price. They may also hope this will prevent competition as it will not be quite as easy to get your hands on one to steal the technology, but I'd say that, if it's any good, someone will have one to take apart within weeks.


Scared Bunny Blog
Not for the timid

11 posted on 07/15/2005 8:02:51 PM PDT by sharktrager (My life is like a box of chocolates, but someone took all the good ones.)
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