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Now days it is often the automakers themselves doing the financing/leasing, so if a model has poor residuals it directly affects their profits. Even with third
by Reason077 5y ago
Now days it is often the automakers themselves doing the financing/leasing, so if a model has poor residuals it directly affects their profits.
Even with third-party financing, the anticipated residuals influence the attractiveness of the lease offer. A cheaper lease offer means more sales for the automaker, and thus more profits.
- ppf 5y agoPersonally I don't think the market has yet caught up to the fact that today's new cars will make horrible purchases as the 3rd or so owner. All the financiers have to do is make sure someone buys it for a good price after 3 years of being leased from new. That's not a bad proposition - the car will probably last a while longer with all of its electonic toys and gizmos working. It's the buyer after that (of which I am usually one) that will find out how expensive the car is to maintain.