đź“° Auto News City of Detroit paying $608 per month to lease 2004 Dodge Intrepid

Mook

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What can you even say to defend a financial decision like this one? According to a report by Detroit's WXYZ television news team, the City of Detroit has been leasing a 2004 Dodge Intrepid since September 2003, over six years after the original two-year-lease expired. Since the City did not return the car, it has continued to make the $608 per month lease payments, even as it racked up miles well beyond the 40,000 in the original agreement, for which it now must pay 15 cents per mile. According to the report, the City has spent over $65,000 for the car, which it doesn't even own.

But that's not all. WXYZ says that Detroit has 110 of these expired lease agreements on 2004 through 2007 models, and all of the cars are still on the road, wasting money with every tick of the odometer. And remember, the City still has to turn in all 110 cars, and pay for excess wear and tear. An estimate of the city's losses incurred by this leasing scheme is well over $4 million, according to the report. The cars are all being used by the Detroit Police Department, and though they're not quite full-zoot police cruisers like the 2002 Intrepid pictured above, they see action for undercover work. That means it's not just the taxpayers who are getting a bad deal here, but the cops themselves, as we're pretty sure none of them are particularly happy to be out risking their lives in an eight-year-old Dodge.

If we can attempt to find the faintest silver lining to this epic thunderstorm of mismanagement, it would be that perhaps in the publicity sure to follow, a few of Detroit's residents might better understand why and how leasing can cost more than financing a new car purchase. And at least the City of Detroit has been using these cars, rather than leaving them in a parking structure to sit and rot.
 

Flyn

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LOL at the silver lining comment.

Easy to see how this can happen. These checks have been going out for years so they keep going out. Routine. The dept. boss should have caught it but he's probably out on a golf course. Surprising thing IMHO is that the city would pay over $600 a month to lease an Intrepid and that they would lease vehicles to use as police cars. Gotta expect police cars are going to see miles and damage so buy the damn things for $20K.
 

blakbearddelite

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LOL at the silver lining comment.

Easy to see how this can happen. These checks have been going out for years so they keep going out. Routine. The dept. boss should have caught it but he's probably out on a golf course. Surprising thing IMHO is that the city would pay over $600 a month to lease an Intrepid and that they would lease vehicles to use as police cars. Gotta expect police cars are going to see miles and damage so buy the damn things for $20K.

Kickbacks. The guy in the leasing department is probably getting rich.
 

jason05gt

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Jan 17, 2007
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Guys, this is just another example of how STUPID the people that run our Government are. We have a bunch of rejects that work for the Government and it shows.

2004 Dodge Intrepid â–Ľ
Available Styles â–Ľ
• MSRP: $21,385 -$24,705
• Invoice: $19,852 -$22,840

$608 x 24= $14,592

You could BUY the car for probably another couple of grand. I am sure Chrysler cut them a deal buying (lease) in bulk, so why would anyone lease this car at this rate and knowing full well that the mileage would be higher than 20K per year? IDIOTS!
 

Bruce Jibboo

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Apr 18, 2008
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This shit applies at local, state, and federal, all the same shit :fu:


Guys, this is just another example of how STUPID the people that run our Government are. We have a bunch of rejects that work for the Government and it shows.

2004 Dodge Intrepid â–Ľ
Available Styles â–Ľ
• MSRP: $21,385 -$24,705
• Invoice: $19,852 -$22,840

$608 x 24= $14,592

You could BUY the car for probably another couple of grand. I am sure Chrysler cut them a deal buying (lease) in bulk, so why would anyone lease this car at this rate and knowing full well that the mileage would be higher than 20K per year? IDIOTS!
 

jason05gt

TCG Elite Member
Jan 17, 2007
15,307
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Naperville
Wait? Someone is making money off of a government contract????! Fuckkk! I really don't understand how you could hate the person making the money. If you are dumb enough to pay me too much for something. I will sell it and not care

Defrauding the taxpayers isn't something that we should take lightly. If I scammed you and you didn't find out about it until years later, you'd certainly be pissed.
 

Flyn

Go ahead. I'll catch up.
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OK, you have a leasing contract with the city of Detroit for X number of vehicles at exorbitant rates for each. They don't seem to know their cars are coming out of lease and keep sending you checks. I don't think any of us would go out of our way to tell them and risk losing the lease or having to provide a new car.
 

jason05gt

TCG Elite Member
Jan 17, 2007
15,307
7,195
Naperville
OK, you have a leasing contract with the city of Detroit for X number of vehicles at exorbitant rates for each. They don't seem to know their cars are coming out of lease and keep sending you checks. I don't think any of us would go out of our way to tell them and risk losing the lease or having to provide a new car.

I guess I see it differently. It’s unethical.

The $600 lease is based on a residual value at the end of the term, which in the contract is 24 months. If they would have done a 48 or 60 month lease, the payment would have been much cheaper than $600 per month.
 
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