Used Cars- Why There Leases Are Getting Wacked
Posted: Thursday, September 30, 2010
by Sean Traynor
YouPaidWhat-used cars
It would seem that moneylenders and car manufactures are loosing up their purse strings. New car leases have become much more common and a lot more attractive to all of us over the past 6 months, but this is causing a hit where used cars and their leases come in.
When the recession hit the automakers, they pulled back on new and used car leases. In fact the option of leasing a new or used car became very hard, but with the purse strings loosing up, leasing has comeback in a big way. Now you have a lot of different options like rock bottom lease payments, and very low interest rates if not 0% interest on new cars.
This is surprising with the dollar amount for a leased vehicle being much lower than this time last year. If you don't understand what I'm talking about let me put it another way. When you settle on a price for a car, the dealer takes the value of what the car will be worth at the end of the lease and subtracts is from the value of the car. What is left over is what you pay and with these values being lower than last year it is surprising that the used car leasing market is not higher.
But with the deals that the car manufactures are offering on new car leases it is very hard for used cars and their leases to compete. Like I said earlier, it is very hard to turn down 0% lease finance and no money down for a new car.
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