Is there a market to lease a vehicle that has been completed? Meaning after the 2 or 3 yr lease, it would be offered for lease again thru a company. Don’t know if this is offered…
thanks.
Some manufacturers offer used car leases.
They are, almost without exception, bad deals.
They also undo many of the reason to lease in the first place, like always having a warranty and not having to buy tires/brakes/batteries/other consumables.
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Just curious, but would that be true even with vehicles like a Tacoma where it doesn’t have massive depreciation in those early years? Or is it that the MF for used is hiked up because it isn’t new?
Because the bank can’t take the time to form a residual on every used car, they operate on a worst case scenario type RV.
A three year old 5 series with 30k mikes or under is fairly easy to peg as worth X% of its new MSRP.
With a used car, who know where the mileage is at inception and who really know what that the value is, after all there’s no MSRP for used cars, only guidelines. So there’s no good basis for starting value and no group of actuaries calculating RVs for every conceivable mileage / condition / history of vehicle that could be peddled second hand. So there is no good source of truth for grounding value.
With no good initial value and no reliable residual, what can the finance company do other than add a ton of insulation to reduce their exposure?
Makes sense. Thanks.