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Leasing Drives More New Car Sales

Car sales remained strong last month, with Chrysler Group and General Motors posting double-digit sales growth over a year earlier. But a growing number of Americans are choosing to lease, rather than buy, new models.

Shutterstock.com

Chrysler’s June U.S. car sales jumped 20% from a year earlier, while General Motors reported a 16% increase, according to data released today by the companies. Ford’s sales rose 7%. At the current pace, about 14 million new cars are expected to sell this year, up from May’s estimate of 13.8 million.

While experts say much of that growth has been driven by stable gas prices and easier access to car loans, leasing is also accounting for a bigger chunk of sales. Nearly 20% of new cars that consumers drove off dealership lots between January and April of this year were leased rather than bought, according to the latest data by Kelley Blue Book. That’s higher than all of 2011, and up from 18.5% in 2010 and 12.7% in 2009.

Historically, leasing has been a bad deal for would-be car buyers, say car experts. In exchange for using the car for three years — the typical lease period — consumers made fixed monthly payments that were often larger than if they purchased the vehicle with a loan.

But recently that trend has been changing. Monthly leasing payments have been dropping as car manufacturers try to encourage consumers who would have otherwise remained on the sidelines to get a new car. Separately, leasing payments are largely based on how well manufacturers believe cars can retain their values. Because cars are holding onto more of their value now than in the past, manufacturers are lowering leasing payments. “Leasing rates have become more competitive,” says Jessica Caldwell, senior analyst for Edmunds.com.

In many cases, the monthly payments on leasing a car are now cheaper than purchasing it with a loan. Honda is leasing the 2012 CR-V for $320 a month without any upfront cash due at signing. Someone who buys the car with a five-year loan at 4.46%, the average rate according to Bankrate.com, will pay $99 more a month without a down payment, or $57 more each month with a 10% down payment. The 2012 Buick LaCross leases for $279 a month with $2,849 down at signing. If a buyer makes the same down payment, their monthly loan payment will be $508 – or $229 more.

Experts say car manufacturers have also been touting leases as an affordable way to finance a car to consumers who might have otherwise not made a purchase. While leasing remains popular with European luxury vehicles, it’s slowly rising in other car segments. Lower-cost Japanese and South Korean vehicles account for 23% and 17% of leases, respectively, up from just 16% and 4% of leases in 2006, according to Edmunds.com. Separately, subcompact cars make up 10% of leases, up from 6% over the same period.

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      Ouch. I just had a Plasma crash (KDE 4.2) that wiped out all of the links to applications that I had on my desktop and in the panel. What used to be a
      Plasma crash loses all desktop icons
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      03-Feb-2009, 23:25
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      chriscrutch
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      Plasma crash loses all desktop icons
      Ouch. I just had a Plasma crash (KDE 4.2) that wiped out all of the links to applications that I had on my desktop and in the panel. What used to be a bunch of .desktop files are now 0-byte files with generic binary icons.
      Anyone else experienced anything similar?
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      03-Feb-2009, 23:34
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      Re: Plasma crash loses all desktop icons
      sounds like you might need to start again with a new .kde4 folder
      but never had this happen myself
      Box: 12.2 | KDE 4.9.4 | AMD 64 X2 5200+ | nVidia 8500GT | 4GB RAM
      Lap #1: 12.2 Mantis | Duo T4300 | KDE 4.9.4 | Intel M4 Graphics | Lenovo G550 | 3GB RAM
      Lap#2: 12.2 | Celeron 550 | Intel 965GM | Lenovo R61 | +EeePC | Mint 13 Mate
      My_Guides
      Reply With Quote
      03-Feb-2009, 23:36
      #3
      sideshow
      Student Penguin
      Join Date Jun 2008
      Posts 65
      Re: Plasma crash loses all desktop icons
      I have this same issue, see this thread:
      Upgrade to KDE 4.2 – Widget issues – openSUSE Forums
      But I find even if I remove the ‘broken’ icons they come back when I logout and back in?
      Whats the .kde4 folder method? Do you just remove it? Anything need to be backed up?
      What about the .kde folder?
      Thanks
      Reply With Quote
      04-Feb-2009, 00:01
      #4
      caf4926
      Administrator
      Join Date Jun 2008
      Location The English Lake District. UK – GMT/BST
      Posts 34,428
      Blog Entries11
      Re: Plasma crash loses all desktop icons
      These are in your hidden user dir
      .kde (has kde3 config – leave this)
      .kde4 (kde4 config)
      If you have gnome or kde3 installed, login there to rename the .kde4 folder to .kde4old
      When you login to kde4 next it will be like the very first time.
      If you only run kde4, you need to logout to a CLI and do this:
      mv /home/*username*/.kde4 .kde4old
      (replace*username* with your user name)
      Box: 12.2 | KDE 4.9.4 | AMD 64 X2 5200+ | nVidia 8500GT | 4GB RAM
      Lap #1: 12.2 Mantis | Duo T4300 | KDE 4.9.4 | Intel M4 Graphics | Lenovo G550 | 3GB RAM
      Lap#2: 12.2 | Celeron 550 | Intel 965GM | Lenovo R61 | +EeePC | Mint 13 Mate
      My_Guides
      Reply With Quote
      04-Feb-2009, 00:52
      #5
      sideshow
      Student Penguin
      Join Date Jun 2008
      Posts 65
      Re: Plasma crash loses all desktop icons
      Originally Posted by caf4926
      These are in your hidden user dir
      .kde (has kde3 config – leave this)
      .kde4 (kde4 config)
      If you have gnome or kde3 installed, login there to rename the .kde4 folder to .kde4old
      When you login to kde4 next it will be like the very first time.
      If you only run kde4, you need to logout to a CLI and do this:
      mv /home/*username*/.kde4 .kde4old
      (replace*username* with your user name)
      Thanks I now have a ‘fresh’ desktop once again.
      I guess this isnt really any different to creating a new user, I will get to work with restoring all my settings from the old .kde4 folder.
      Unfortunately kde 4.2 also seems to have broken my suspend to ram, but I have another thread for that
      Thanks again.
      Reply With Quote
      04-Feb-2009, 01:05
      #6
      caf4926
      Administrator
      Join Date Jun 2008
      Location The English Lake District. UK – GMT/BST
      Posts 34,428
      Blog Entries11
      Re: Plasma crash loses all desktop icons
      Good. Yes it’s very similar to new user, but not quite the same.
      FYI. As soon as I have a nice setup with kde4 – I make a backup of .kde4
      Proved very useful.
      Box: 12.2 | KDE 4.9.4 | AMD 64 X2 5200+ | nVidia 8500GT | 4GB RAM
      Lap #1: 12.2 Mantis | Duo T4300 | KDE 4.9.4 | Intel M4 Graphics | Lenovo G550 | 3GB RAM
      Lap#2: 12.2 | Celeron 550 | Intel 965GM | Lenovo R61 | +EeePC | Mint 13 Mate
      My_Guides
      Reply With Quote
      04-Feb-2009, 03:34
      #7
      john_hudson
      Shaman Penguin
      Join Date Jun 2008
      Location West Yorkshire, UK
      Posts 2,575
      Re: Plasma crash loses all desktop icons
      It’s just happened to me while I have been on this forum – even the backtrace was corrupted – so now I know what to do when I finish!
      Reply With Quote
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