I really feel for anyone trying to lease. The difference from even one year ago when things were really starting to crash is even remarkable. Note if you go back to 2019 or 2020, and look at the difference in rates and incentives, you will see how much more you are getting HOSED. The message is clear to me: DO NOT LEASE.
MF x 2400 = APR (or the interest rate on the loan)
For those not aware
Case #1 Audi Q5
In September 2021 .00132 MF (3.1% interest) and 55% residual
In September 2022 00305 MF (7.3% interest) and 58% residual
Case #2 Infiniti QX50 I nailed one of these in September 2021, see my previous posts but essentially $47k vehicle with no money down except MSDs and all VA tax rolled in for $410 a month. You will pay double these days.
In September 2021 .00165 MF (3.96% interest) and 57% RV + $4,000 incentive
In September 2022 .00294 MF (7% interest) and 56% RV and NO incentive
Case #3 BMW X5
In September 2021 .00093 MF (2.2% interest) and 52% residual
In September 2022 .00190 MF (4.6% interest) and 51% residual
Case #4 Mercedes GLE
In September 2021 .00150 MF (3.6% interest) and 57% residual
In September 2022 .00230 (5.5% interest) and 56% residual
Although stealerships are starting to get more inventory, we are no where close to 2019/2020. Discounts are starting to grow and will grow more and more (I feel, which inventory racking up, just like homes are racking up). We need sub-vented rates and larger incentives from manufacturers.Biden and the democrats RUINED the EV tax but putting income limits on it and other restrictions.
Hopefully things change, but if no we are heading into a leasing recession. Many of you will be priced out of the market and inventory will ramp up. Then and only then, when profits sink will these climate get better.
I hate when the guy who’s been handing out free candy for 5 years straight suddenly decides he’s not giving out free candy anymore. I dunno if I’d call it robbery though.
