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>Maybe I'll have to wade back into actually owning a vehicle if the prices absolutely tank. I would assume that if used car prices plummet, residual values on
by aguyfromnb 6y ago
>Maybe I'll have to wade back into actually owning a vehicle if the prices absolutely tank.
I would assume that if used car prices plummet, residual values on leases will fall, making the leases more expensive.
Lightly used vehicles will be where it's at.
- PaulWaldman 6y agoNot necessarily, leases are determined by the difference between the residual value and selling price, not MSRP. Automakers will likely pile on incentives to reduce the selling price. Since car makers have their own finance arms, the residual prices will likely be kept artificially high. This allows them to kick the problem down the road until lease expiration.
- Waterluvian 6y agoIf I'm following your Hypothesis right, you're suggesting that maybe they will artificially deflate the cost of a lease to move them, and then pay the price when they get them back because they're worth less than estimated at start of lease?
- URSpider94 6y ago... or just give incentives up front on the MSRP. Manufacturers do both, it depends on how the details of the accounting play out.