So what happens to all the consumers buying new leases today at MSRP. Let’s say they Lease a car with an MSRP of $25,000 and they are paying $475 a month for that lease, what happens when the entire market corrects and the chip shortage that once was is no longer and that same car that was leased at $475 a month is now leasing out at 289 a month with an invoice price of $22500? Who is going to feel the pinch, the leasee or the car company. My guess is no one feels the pinch but maybe the consumer who decided to over pay for a car during a chip shortage crunch, right?
There were a lot of people paying $475/mo for a $25k msrp car before the chip shortage. Most people don’t check leasehackr forums to see what things are leasing for like every single day, so the saying “Ignorance is bliss” would still apply.
3 Likes
Lease residual is the same whether the buyer pays over retail or a huge discount…their payment is just a lot higher.
I see my clients and friends leases…and they stink. I try to educate them, but they just don’t want to listen…seems like most of them are set on a particular model or trim, which makes negotiating much tougher in most cases.
rather walk then drive a mirage, much less at a 6k markup
6 Likes
The Mirage is the only rental car I hate as much as the RAV4.
I may have made claims in other posts that I hate the Mirage more, but since then I’ve been stuck with a RAV4 for a second time.
So I’m no longer certain.
2 Likes
Just you wait until they give you a mistubishi eclipse cross. You’re going to be begging for that Rav4.
Interestingly, Avis gave me an HRV for the trip I’m currently on. It’s not bad at all, other than being woefully underpowered.
1 Like
I’d take my chances with the Eclipse.
You’ll only make that mistake once.
Im in a Kia Optima FE rental…are you guys saying your rentals are worse than this?
2 Likes
Lord have mercy on this poor mans soul, he knoweth not what he drives.
RIP 
You never know how bad a rental can be until you have a mitsubishi eclipse cross.
1 Like
Toyota Rav4
The market is softening and New Car prices are dropping
3 Likes
Doesn’t the car market usually soften around this time of the year? Or am I wrong?
No. Not really. For August, LHers are going to see a definite adjustment on the Used Car Market
2 Likes
Does that mean your store isn’t MSRP across the board anymore? Or was that never the case? Don’t expect 4Runners or Tacos to get discounted anytime soon but what about Corolla/Camrys.
That means that there isn’t any market adjustment anymore. I am still at MSRP for every vehicles except for Tundras and Land Cruisers
2 Likes
2 Likes
Thanks for this! I had messaged Matt last night about this same subject.
2 Likes
Roll equity into down payment.
1 Like