Lambo Financing About To Be Introduced | LamborghiniChat
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Lambo Financing About To Be Introduced

Discussion in 'Lamborghini Discussion (not model specific)' started by ghost, Apr 18, 2005.

  1. ghost

    ghost Formula Junior
    Lifetime Rossa

    Dec 10, 2003
    643
    Singapore
    Full Name:
    Vik
    Just heard that Lambo is going to be introducing its own finance program in the next couple of weeks. Dealers don't know the details, other than it will be similar to the Bentley finance programs, which I understand is 10% down.

    Other interesting point is that dealers are pushing hard for Lambo to start a CLOSED-END leasing program. Obviously resistance from Audi / Lambo based on the fact that the residuals are a big unknown at this for the G. I think this is a long way from becoming reality. But interesting to see it at least being discussed.

    (Wish Ferrari would get of its lazy arse and do something similar.)
     
  2. racerdj

    racerdj Formula 3

    Jan 19, 2003
    2,007
    Indianapolis
    Full Name:
    DJS
    Will this help or hurt prices?? My read is it will reduce supply and hopefully increase demand.
     
  3. ghost

    ghost Formula Junior
    Lifetime Rossa

    Dec 10, 2003
    643
    Singapore
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    Vik
    Shouldn't have a DIRECT impact either way. Of course, INDIRECTLY, easy access to on-the-spot financing by prospective buyers should lead to more sales, and THAT will lead to reduced supply and more stable prices.
     
  4. Westworld

    Westworld Rookie

    May 18, 2004
    0
    Will this bring msrp prices down and allow people who couldn't afford it without financing, to buy it?
     
  5. ghost

    ghost Formula Junior
    Lifetime Rossa

    Dec 10, 2003
    643
    Singapore
    Full Name:
    Vik
    Shouldn't impact selling prices - ie, if you've negotiated 10K off sticker, you'd still get 10K off regardless of whether you financed through Lambo or not. However, on the margin, will allow a sale to go through for the buyer that wants a car, but would have had to arrange financing from a third-party beforehand. Again, this is probably for the small subset of "impromptu" purchases, as most that are serious about buying would have already arranged financing before they stepped into the dealership.

    All of this is speculation by me, as no terms / conditions have yet been released...even to dealers, from what I understand.
     
  6. Kds

    Kds Karting

    Dealers pushing for closed end leases means one thing only.........and it's not good.
     
  7. BlueBiturbo

    BlueBiturbo F1 Rookie

    May 19, 2004
    2,537
    Jakarta
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    TS
    Why is it that a closed-end lease bad?

    =========================================================

    http://www.leaseguide.com/lease06.htm

    Closed-end leases, sometimes called "walk-away" leases, are most common for consumer leases today. This type of lease allows you to simply return your vehicle at the end of the lease and have no other responsibilities.

    Closed-end leases are based on the concept that the number of miles you drive annually is fairly predictable (12,000 miles per year is typical), that the vehicle will not be driven in rough or abusive conditions, and that its value at the end of the lease (the residual) is therefore somewhat predictable.

    At the time you lease, the leasing company estimates the vehicle's lease-end residual value and, if the vehicle is actually worth less than the residual when you turn it in, the leasing company takes the financial hit, not you.

    On the other hand, if the vehicle is worth more than the residual, and you have the option to purchase, you may want to buy the vehicle, then keep driving it or sell it and make a profit. This happens frequently.

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