Leasing a bike is jsut like renting a bike for a longer time. IT STILL ISN'T YOURS...

You will spend alot of money and in the end still have nothing. Not to mention that what is the miles that you are allowed to put on them per year....

I got an idea, how about all of the trailer queens lease their bikes and then that will put alot of used motorcycles on the market for everyone that is trying to sell their bikes to buy a new one and screw up the whole economy even MORE.....

 

I can see the value of our bikes decreasing even more. Imagine when all the leases starts running out on these bikes and the lease company's start flooding the market with them.

 

Consumer advocates, noted professionals and a good calculator will confirm that a car lease is the most expensive way to operate any vehicle.

Example: A $22,000/bike is leased for 36 months and when you turn it in it's worth $10K (or less because we're talking about an HD dealer). Someone has to cover the $12K loss. Your lease payment is to cover not only the loss in value, but to also net a profit for the dealer.

Smart Money quotes NADA as stating the average vehicle financed will net almost 10x more for the dealer vs. a cash transacton. Leasing nets the dealer over 15 times that of a cash transaction!

The auto giants aren't going to put together a plan to lose money. This leasing is going to make HD a ton more due to the bad economy. Now even more people will be riding that previously couldn't afford to. Now there's another way for them to have what they can't afford while throwing away more money they shouldn't.

"Don't buy something you can't afford using an unwise method then attempt to justify your stupidity."

 

How could we possibly ignore an authoritative source like OutofYourRut.com? Geez, I wish I would have known sooner they didn't like it.

Seriously though, if you understand what you are getting yourself into, its not necessarily a bad thing if it fits your situation. Leasing is really just another financing alternative that resembles a balloon loan. Your payments are lower than buying and financing because you are only paying for the difference in value between the new price and the value at the end of the lease, not the entire cost of the bike. Many people consider not owning an asset that depreciates 30% the minute you shake the salesman's hand and put your butt in the seat as a good thing, not a disadvantage. Also, keep in mind that even though the lease has a buy-out price quoted in the paperwork (residual value), that price IS negotiable at the end. And, unless you put a good chunk down when you buy, odds are you will be just as far upside down with a purchase and loan as you would be on a lease.

On the down side, you do have a mileage limit on leases which gets expensive if you exceed. It has to be this way as the residual value is calculated based on the mileage the bike will have at the end of the lease. So if you go well over the mileage you will probably be forced into buying it at the end and either keeping it or selling it yourself. If you are hard on your scoot leasing may not be the way to go either. The turn-in inspection could produce a lot of $$ in penalties for excessive wear. Getting out of a lease early is an expensive proposition, because basically, you are on the hook for the entire term of the lease, so you would have to negotiate your way out of the remaining amount, and that's often not easy. Its just like trying to get out of an apartment or house lease early.

No doubt leasing is not for everyone. But, if you need something to lower your payments, don't have a lot to put down, or you trade your bike in every 2-3 years, it might be something to consider. Just saying its bad, don't do it is short-sighted. Do keep in mind the negatives and do a cost comparison between leasing and conventional financing, then make your choice.

 

Are these leases through Harley Davidson Finance Comp (MoCo), or are they though the likes of Household Finance, Bank of America, Wells Fargo, etc.? Makes a huge difference on the terms. Be sure to read the fine print.

Mike

 

No, it's still a bad thing whether you understand it or not. It's only going to make your situation worse. The only applicable situation would be: "I have a history of making poor financial decisions, and I'm stretched to the limit."

 

There is a school of thought that says "buy things that appreciate, lease things that depreciate"

 

Not the I would call myself an expert, but I have over 25 years experience in retail leasing. My wife still works as a Finance Manager in a dealership. I can still work a lease out with a pencil and calculator.

1. Yes, dealerships have pencil whipped consumers for years until some of the recent Truth In Lending law changes.

2. YOUR situation dictates whether it is a good deal for you or not.

3. Educate yourself. Learn the vocabulary and what it means.

4. The money factor is where the dealers are making their money now.

5. Cap cost = selling price. Make sure to see it and understand what is all packed into it.

I suspect these will be low mileage leases. I am going to corner up a few of my dealer friends and see if I can get my hands on the residual charts and lease forms. If I do, I will dummy up an average lease and break it down here for everyone.

 

If you are comparing any type of financing to paying cash, not just leasing, of course its going to be way more expensive. Sounds like from your previous post and this one you're saying that anyone who doesn't pay cash for everything is stupid....your word (stupidity) not mine....and making a poor financial decision.

Eliminate financing as an option and see how much your next scoot costs you next time you walk into a dealer with your wad of cash.

 

No doubt. Forget the financial aspects of leasing for a moment, and consider whether you want to ride someone else's bike for years. Jeez, not me!

What are you gonna do about the cams you put in? The big bore kit? Pipes? A/C? Tuner? Custom body work? Etc...

I can't imagine getting on someone else's bike every morning. Talk about a poser.