Dealer wants to buy out my lease?

DownTheAvenue wrote:

Powerdude wrote:

He would gain a newer used truck to put on his lot and sell at a profit. You would have the same payment, but for a longer time, thus guaranteeing the dealer a revenue stream for a longer period of time.

I don't understand this statement. It implies that the dealer makes revenue with every payment a purchaser makes. If that is the meaning of this statement, that is WRONG. A dealer usually makes money with any financing he arranges with a "spread" of interest from what the contract is and what a finance company or bank will buy.

Spreads are almost extinct. Too much risk for the lender and dealer from discrimination lawsuits. Today most contracts pay the dealer a flat fee or nothing at all for placing a lease or loan. The dealer has enough incentive since no loan means no sale. And a lower rate means a lower payment which makes selling warrantees and accessories easier.