Are you going to be in the market for a car in the near future? If you can accept “new for you” instead of “new” and you don’t have your heart set on a truck or SUV, you may be in luck: Used car dealers are about to find themselves awash in 3- and 4-year-old vehicles.
Why? Because after the last recession, leasing a new vehicle became more popular as manufacturers offered deals and customers shied away from traditional auto loans. As that first major wave of leases expires, these low-mileage cars are being turned back in and going out onto dealer lots.
How many? For an example, the The Associated Press points to Infiniti, Nissan’s luxury sibling brand. In 2014, the brand leased 28,000 Q50 model sedans at low prices, which was more than 75% of the Q50s produced. Since the typical lease for these cars is three years, many of those 28,000 vehicles will be up for sale as used cars. And that’s just one model from one car company.
This all seemed like a good idea at the time, because sedans were holding their value pretty well three years ago. Automakers could collect lease payments for a few years, then turn around and re-sell the vehicle as “certified” to another buyer interested in a new-ish car.
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3 comments:
Good news? Thats a joke. Some one uses and abuses a car because its not theirs and then it gets resold and certified? What a joke. Who writes this garbage? More auto maker propaganda trying to hookwink the consumer.
Headline should be: Car Lots about to take a bath with the return of used leases. Consumers beware.
New dealerships should stop charging so much for new cars. Now they 8-year loans for new cars? Why would anyone need 8 years if the car is priced reasonably? A Honda Civic used to cost $7,000 and change new, now it's $25,000 and above. This is the economic model of the Honda fleet. Prices are ridiculous and dealers drive them up further making people buy things the car ships with like floor mats and the nets to hold groceries in the back of SUVs and other hatch cars. It's a real racket. Cars Industry takes big advantage of consumers.
You wax your car a couple times a year but dealers try to upsell that protecting coat at $700 a pop and only lasts 5 years meaning you save yourself from waxing your car for 10X. When have you waxed your car and it cost $70 a pop unless you went and had the whole thing detailed at the local car wash?
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