Wayfair invents their own brands and slaps crazy MSRP on OEM products. One needs to compare (which is not easy with their own “brands”), but their prices are very often on par with others.
1 Like
Theoretically though for leasing, a higher msrp and a negligible change in residual/mf would be a benefit. Just a hypothetical thought, but I would wager that they drop residuals in response. What’s the phrase? Pulling wool over the “sheeps” eyes
These banks will not raise residual with real world current used car values. No chance. They’re making a killing at auction right now from all the people that naively return their lease without checking its value. That’s their right and their windfall.
It’s just getting to the point where buying is starting to make more sense on a lot more deals then before. We just need to keep lining up incentives with high residuals and discounts and sharing the best deals here. It will get worse IMO
4 Likes
Yeah 100% agree, I meant they might not change or even slightly drop residuals in response to higher msrp. Similar to the 7 and 8 series bmw used to be 55% for 36/10 and now are 52%
Why would they drop residuals? They are still making more money by just raising MSRP by increasing total lease cost?
In preparation for the market going back to normal.
With a shortage people would be forced to accept the residual versus in a normal market they could shop elsewhere.
Have residuals increased that much in the first place?
Ford is now offering 66% residual for 36/10 on the f150.
They are predicting a 75k f150 will be worth $49,500 for a truck that is 3 years old and 30k miles.
In a normal market that truck is worth 45k at most dealers.
In today’s market it’s worth roughly 50-52k
I haven’t looked at other vehicles, so I have no idea, could be isolated I guess.
They haven’t raised the Tacoma residual to 102% yet. 
19 Likes
There’s a parking garage I see on the train every day in NJ between Harrison and Newark that was at one point filled with what looked to be BMWs that still had the protective film attached to them. My best guess is that some dealer nearby was renting the space for excess inventory. That entire garage has been empty for quite a while now.
3 Likes
Buy now or be priced out forever… 
1 Like
I feel like the residual is 102%. Was looking at my lease paperwork on my 2019 Tacoma a little while ago. Sale price was ~ $32,800. 21 months later with 21k miles on it Vroom is offering $36,225 for it. Now if only I could find a replacement.
2 Likes
I don’t know what everyone is crying about. My local supermarket is stock full of chips. Lots of brands and flavors to choose from.
15 Likes
Driving a car for free for 21 months plus walking away with 3,500 dollars would be a pretty epic lease hack.
I know someone in DC who sold both his trucks for crazy amounts (about what he paid, after tax 18 and 24 months respectively) to Carvana and a Chevy dealership. He then got a base 2020 AWD MDX OTD for 34k for temporary wheels. He figures drive it for six months, sell it and get a new truck or two when supply returns.
3 Likes
That sounds like an asset and not a liability 
Sign me up for that!
1 Like
My Volvo is up in January, but figured I’d do pull-ahead. But not if it costs me more $.
If the problem remains, thank goodness in New York we have trains and the Citibike program!!!
I have driven my leased 2018 RAV4 for 11k miles in 34 months now.
The gross cap cost was 22.5k.
Yesterday I got a quote from CarMax that they would buy it for 21.3k cash !!! What is going on??? My residual is 14.5 K in my contract!
I know I didn’t use the miles but even a 36k mileage one is now listed on dealerships for 20-22k !!! Am I missing something? What has happened to the world?
The used car market is going insane right now
2 Likes
I know but what’s the point? With a couple of grands extra you can get the new 2021 year model. I don’t think the free market rules have changed.
Shhh don’t tell them…