hirecar pilots come unstuck

nick mercedes

MB Enthusiast
Joined
Jan 8, 2003
Messages
7,106
Location
far far away
Car
Ford Expedition
For drivers who don't want to commit to a new car purchase, leasing has become a popular option. But for a police department in a city with a struggling economy, running up a $65,000 bill for what amounts to renting an nine-year-old car seems like a bit of an oversight. That's just what the Detroit Police Department has been doing since 2003 when it leased a 2004 model Dodge Intrepid at the lofty price of $608 per month. The problem? They've been paying that price ever since.

The original terms of the lease stated that the car would be returned in 2005, at which point the department could choose to buy it outright to take delivery of a newer model. That trade-in never happened, and so far the city has handed out a total of over $56,000 in monthly payments. But that's not all: Because the department has gone well over the original mileage agreement, they owe nearly $10,000 in additional fees, bringing their total bill to well over $65,000. That's $65,000 for a car that could be bought new in 2003 for less than $25,000.

But that's just one vehicle, and the city is currently paying for over a hundred leased cars currently in use, and all of them are operating on expired leases. The seemingly careless spending could total several millions of dollars in the end, and the city apparently has no plans to reverse the practice

City of Detroit is paying $65,000 for a 2004 Dodge Intrepid that it doesn
 

davidjpowell

MB Enthusiast
Joined
Nov 8, 2007
Messages
4,897
Location
Doncaster
Car
Range Rover Vogue, Volvo XC60 and crappy Pug 307
Less about hire car pilots, more about City administrators.
 
OP
OP
nick mercedes

nick mercedes

MB Enthusiast
Joined
Jan 8, 2003
Messages
7,106
Location
far far away
Car
Ford Expedition
Less about hire car pilots, more about City administrators.
Perhaps the issue is that nobody will offer up new leases to an indebted city?

The perils of living off borrowed money...
 

Users Who Are Viewing This Thread (Users: 0, Guests: 1)

Top Bottom