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Not necessarily, leases are determined by the difference between the residual value and selling price, not MSRP. Automakers will likely pile on incentives to re
by PaulWaldman 7y ago
Not 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 7y 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 7y ago... or just give incentives up front on the MSRP. Manufacturers do both, it depends on how the details of the accounting play out.