5 ms·

It's specifically talking about lease cars too - car manufacturers actually already have agreements with lease companies to take back cars after 3 years, which

by Closi 5y ago

It's specifically talking about lease cars too - car manufacturers actually already have agreements with lease companies to take back cars after 3 years, which is a key reason car manufacturers have 'approved used' car sales. This arrangement is particularly common with company cars.

tonyedgecombe 5y ago
Is that true, I always thought they ended up in the car auctions.
- to11mtm 5y ago
  It depends on a few factors. Typically, what happens post-lease is that the inspection will help determine whether the vehicle is of the correct 'quality' to be Certified Pre-Owned (i.e. sufficient quality or fixing whatever's wrong and selling as CPO is worth doing) and that's kinda the first decision gate. After that, I would assume that the dealer getting the lease back has some pull as to whether they keep it, but that might be contingent on a few factors like what your agreement with the leasing company is and what your current floorplan is like. (Many dealers in the US don't own most of the inventory on their lots, so any car you keep on your lot eats into that line of credit.) Oh, also the agreements between the financing companies and the auctions themselves. In some cases the agreements are extremely tight, and there are only small windows where someone doesn't already have the 'rights' to sell a vehicle. (That was a fun project.)
  - Closi 5y ago
    These large corporate lease agreements aren't done through the dealer network in the UK - they are done through a lease company which liaises directly with the car manufacturers.
- Closi 5y ago
  I'm from the UK and it may be different in other places - but I have a friend who works for a large automaker in their second hand ex-lease team who explained this to me, so it absolutely exists here at least!
gertrunde 5y ago
That may be the case for cars from dealer/manufacturer lease/hire-purchase schemes, but for the big corporate leasing companies (e.g. Arval, Leaseplan, et al), the cars usually get picked up at the end of the lease and dropped off at the nearest BCA facility and auctioned off ASAP. (Which is amusingly the cheapest way to buy your car at the end of lease... just ask the pick up driver where he's taking it...)

by Closi 5y ago

tonyedgecombe 5y ago

Is that true, I always thought they ended up in the car auctions.

to11mtm 5y ago
It depends on a few factors. Typically, what happens post-lease is that the inspection will help determine whether the vehicle is of the correct 'quality' to be Certified Pre-Owned (i.e. sufficient quality or fixing whatever's wrong and selling as CPO is worth doing) and that's kinda the first decision gate. After that, I would assume that the dealer getting the lease back has some pull as to whether they keep it, but that might be contingent on a few factors like what your agreement with the leasing company is and what your current floorplan is like. (Many dealers in the US don't own most of the inventory on their lots, so any car you keep on your lot eats into that line of credit.) Oh, also the agreements between the financing companies and the auctions themselves. In some cases the agreements are extremely tight, and there are only small windows where someone doesn't already have the 'rights' to sell a vehicle. (That was a fun project.)
- Closi 5y ago
  These large corporate lease agreements aren't done through the dealer network in the UK - they are done through a lease company which liaises directly with the car manufacturers.
Closi 5y ago
I'm from the UK and it may be different in other places - but I have a friend who works for a large automaker in their second hand ex-lease team who explained this to me, so it absolutely exists here at least!

gertrunde 5y ago

That may be the case for cars from dealer/manufacturer lease/hire-purchase schemes, but for the big corporate leasing companies (e.g. Arval, Leaseplan, et al), the cars usually get picked up at the end of the lease and dropped off at the nearest BCA facility and auctioned off ASAP. (Which is amusingly the cheapest way to buy your car at the end of lease... just ask the pick up driver where he's taking it...)