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Last paragraph of the article: GM and Ford’s captive-finance companies and Ally are doing what they can to limit their contribution to the glut
by jaytaylor 7y ago
Last paragraph of the article:
GM and Ford’s captive-finance
companies and Ally are doing
what they can to limit their
contribution to the glut of
used vehicles hitting
auctions by offering
extensions to lease
customers. “That helps to
manage the supply dynamics
relative to demand and we
think that overall positions
the market to be stronger,”
Laclair said.
I suspect this is likely legal, but when I read it, I got this feeling like "that doesn't seem right". How can it be acceptable for a single private entity to control that much of the market?
It's certainly manipulative. The reality is that cars should be less valuable right now and for some period of time after an event like Covid19.
- PaulWaldman 7y agoI have a lease that's up in May and have been offered an extension a few times. They are even incentivizing it by keeping the price the same which is interesting when you factor in lessee contributed cap cost reductions.
- URSpider94 7y agoIt’s cheap money on their part - keep the car in your hands and on your insurance for 3-6 months until the market settles.
- URSpider94 7y agoThere are three different entities mentioned in that quote, along with rental car companies and the leasing arms of the other automakers. And yes, of course these major volume producers are taking steps to limit their losses. They aren’t colluding, they don’t need to. It’s not illegal, nor unethical. Nobody has an obligation to dump cars into a falling market.
- skybrian 7y agoIt's an option. Being able to put off car shopping for a while is worth something, and probably worth more now since it's a good time to avoid shopping in general. You still need to be smart enough to decide whether it's your best option or not.