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.

It's a revenue stream for somebody, probably Chrysler Financial, and the salesman gets a commission and the dealer gets whatever bonus/holdback/lease spread for putting the guy into a new lease.

So, my point was that basically, he terminates his lease, his current truck gets put on the lot (or sold at auction) or whatever the arrangement the dealer has, so somebody makes money (i.e. not the former lessee).

Then he gets into a new lease, and somebody makes money for putting him into that new lease, whether it's the salesman, lease office, finance company, whatever.

If he's happy, and they're happy, that's fine. Just realize that the car business is designed for one thing, and one thing only. To make money from selling cars (whether that's a lease, new, or used), whatever.

That's just the way it is. If he's happy, and everybody is happy, no reason not to do the deal. But, happiness costs money, and makes money, for the dealer. But hey, you can't take it with you.