D&M Leasing- Houston, TX

[cjc6464]

Hey Guys! 

Was recently in the market to trade out of my 19' Jetta w/ 54K miles for a small pickup truck AKA Tacoma. I was going around crunching numbers on leases bc I need to get my negative equity out so I felt like this was a viable option. My parents lease with a company called D&M leasing based out of Dallas. D&M buys at wholesale and shops the lease out to local credit unions. This is turn gives a little more flexibility when it comes to miles. Has anyone every heard of this type of lease or had a experience to share about D&M? Is there a downside to not doing a lease with a captive? 

Thanks

C- 

[Creditplz]

Is this a open end lease with balloon payment at the end? Or a closed end lease?

I know some of my friends lease through company's like Putnam, Amazon leasing, etc... but only for exotics, i mean I have only ever leased from captive lenders usually easier to deal with and terms are great but I have contacted Putnam on a exotic once and backed out once the approval came in haha. 

[Dadof31978]

Number 1.  leasing does not get you out of negative equity...especially since it can't be residualized..you are just paying for it over 36/48 months vs the whole term if you roll it and then you are paying rent (money factor) on it which is horrible again...that's a huge conceptual error to think it would ever get you out of negative equity.  Only cash does this.

Number 2. If it's open ended it's even worse as nobody will guarantee value.

Unless you want to stay in debt....don't do this, it's a horribly bad idea.