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Not sure this will be any "flood" of lease returns. I have leased several cars in the past, none currently. Plenty of people buy/sell cars regularly especially when the economy is strong and they are feeling the discretionary income flow.
Thats why my son is waiting to get a used car until the surplus comes
He may want to move forward if he finds a good deal...this "flood" is something that has been discussed in the media since at least 2014. If he's looking at certain sedans which are taking a hit in new sales it may be worth the continued wait.
Where I live really seeing not much of a impact in prices on late model used...selection does seem better than what normally be expected tho.
The people who returned leases still need cars. So they will either buy theirs out or lease new ones. The return leased vehicles will be bought by peoplevlooking for a newer car and they will sell their old car to a private party that’s doing their own move up. And the6 will sell their car to someone who is buying their first car replacing a beater etc
Quote:
Originally Posted by City Guy997S
Not sure this will be any "flood" of lease returns. I have leased several cars in the past, none currently. Plenty of people buy/sell cars regularly especially when the economy is strong and they are feeling the discretionary income flow.
Yes...There will be no dealer lots full of lease returned Jeep Grand Cherokee's, papered with an artificially high residual value, so high that every dealer flipped it back to the bank, then followed the truck to the auction to buy it at fair market value rather than the residual, as was happening pre-2008.
And as E4You said, people returning a lease are either re-leasing/buying, or buying out their lease.
My Dad just returned a lease car and leased a new one. Even though he went with a few more options (same car) the lease payment went down. Two days after he returned the car, they notified him of a charge for some scratches. He asked to see the car and he was told they had already sold it. Obviously there is some demand(or they were just lying). Fortunately for him he had done a return inspection ahead of time and no damage was noted, so they withdrew their charges.
Well you could read the article I posted but that would require work and time
Did read it.
That was Bloomberg quoting Black Book. Is a real analysis. But.
I have been reading this same scenario for decades from other sources.
Where do used car values come from? Who collects the data? Where does the data come from?
The high priced used cars at new car dealers will always be high priced.
But when the next recession hits - yes - used car prices will be lower because people without jobs don't buy used cars (or new cars). The expensive ones that is.
We leased to get out of negative equity. The beauty of the lease is that we have a clean slate at the end of 3 years so that we can start fresh. We will not lease, nor will we buy new, but will definitely buy something used. My wife does not care for the newer style cars and their gadgets. She says they distract her from driving so we'd be in the market for something probably close to 10 years old in 3 years.
One thing you can bank on is that no two lease returns are the same
Since most people have some type of vehicle payment a lease is a way
to get more vehicle for about the same payment and not be welded in if
your circumstances change before the loan is paid off
My current lease will terminate in 04/19. I will not buy it out as the current
market on this unit has nose dived and most importantly the vehicle no
longer fits my needs or wants.
And this will be the LAST GM product for me because of poor quality
and the endless excuses of why the dealer can or will not repair
I remember back in the 90's the Ford ( Red Carpet Lease ) some vehicles
2 & 3 year lease returns qualified for a " Per Owned " lease not sure if
that still exists
All in all it's better to have options rather then obligation's !
He may want to move forward if he finds a good deal...this "flood" is something that has been discussed in the media since at least 2014. If he's looking at certain sedans which are taking a hit in new sales it may be worth the continued wait.
Where I live really seeing not much of a impact in prices on late model used...selection does seem better than what normally be expected tho.
In 2014 they predicted it. They didn't say it was happening.
We leased to get out of negative equity. The beauty of the lease is that we have a clean slate at the end of 3 years so that we can start fresh. We will not lease, nor will we buy new, but will definitely buy something used. My wife does not care for the newer style cars and their gadgets. She says they distract her from driving so we'd be in the market for something probably close to 10 years old in 3 years.
The best lease value I saw was a $99 Jetta after the VW scandal. You aren't even paying for depreciation on that thing.
My car is so old it appreciates in value due to inflation!
This whole flood of lease cars depressing used car prices is self-correcting. With the revised residual values, new car leases are getting a heck of a lot more expensive.
I pay cash for my new cars and keep them until they're heavily depreciated. My car is 3 years old now. Unless I total it, I really don't care about the value. 4 or 5 years when I'm trading it before the road salt eats it, it won't be worth much.
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