Changes in New Car Leasing Can Save Used Car Buyers a Lot of Money
There’s been some “bombshell” news when it comes to automotive leasing. Chrysler’s financial division is going to stop financing leases and Ford has been forced to up its leasing rates to the point where many people won’t be able to afford them. It all has to do with residual values, which are the estimated values of used cars at the end of their leases. Manufacturers have discovered it’s an expensive business to be in right now to the tunes of billions of dollars in losses.
It’s going to mean higher prices on new car leases, which is a bad thing for business owners who rely on leasing for a variety of reasons - but there is a silver lining. Can’t afford to lease a new vehicle? Buy the vehicle you’re leasing now and you’re going to save a ton of money on a vehicle you already know you like.
Just don’t buy it under the terms of your current lease. The number mentioned there is nowhere near reality. Instead, make the dealer start from scratch as if this is an entirely new transaction totally disconnected to your current lease. Learn how you can knock 15% off the price of your used truck or SUV by reading my article.
Great post. Very informative. I’ve always been uncomfortable with the idea of leasing. I understand you had to be very careful to have the right insurance and to watch your mileage carefully… neither of which are things that come easily to me.
Even in the past you could always barging over a buyout of a lease or leverage towards a new purchase or lease.
You also have more to deal with if the car has feature that would make it harder to sell or wholesale (i.e. Manual Shift).
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