Whatever happened to 2nd hand leasing?

I vaguely remember it was a thing in the early to mid 2000s. Ive never done one myself. Wonder why it went away. Has anyone ever done it? The first negative I can think of is ending up outside lf factory warranty by leaese end.

Porsche cornered the market in modern day America with CPO Taycan leases :joy:

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I did it one time on a BMW lease and in my head it was going to be me driving an equivalent car for $200 less a month. In reality it prob saved me $35 month but greatly increased the chance I’d be on the hook for a set of tires.

The RV and lack of incentives really makes it an uphill climb and most lessors do not publish the data for comparison purposes.

Not really sure other than Porsche who is doing it these days. I did ask a BMW person on here to see if that program was still around and never heard back.

Captives exist to move metal coming out of factories that are very expensive to idle.

What’s their motivation to move used cars? And take them back in another 3 years? To do what with them? There’s no motivation to subsidize the MF or take any RV risk on these so the leases suck.

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What motivated them to do it back then? Surely something?..as I beleive leasing has been around since at least the 90s

To do what? Be specific. What used car deal(s) are you referring to?

you’re phrasing the question in the present tense. THis was something that happened in the past. You’re asking me questions I have no answers to, thus my initial post. My resonse to you was simple. What motivated the manufacturers back then to do it. Surely they knew the answers to the very questions you posted. Was it the financial market? I simply dont know. Hence the post :slight_smile:

Lexus still does it but the programs suck now. In 2016 I had a 2013 GS350 Lux ($65k MSRP w/20k mi) for $300/mo effective for 36 mo and 15k mi/yr.

But since 2019, I haven’t seen good Lexus CPO deals.

Cool. Thanks for sharing. Which kind of explains the warranty peice them CPO’ing fhr car.

It’s hard to know what was appealing about past deals without being more specific. And it’s also relative. If someone said they got a CPO 2015 BMW in 2018 for $250 maybe that looks appealing in isolation. But not if people could get a 2017 demo at the same time for $200.

And there’s no denying that car companies have come up with many ideas over the years that didn’t work for them and got canceled. GM wanted to create an “import fighter” brand from scratch and with no parts sharing with their legacy divisions. Huge marketing and R&D expenditure that created no shareholder value partly because it was mismanaged.

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During COVID supply shortages some dealers were also working with third party banks to provide leases like these as another revenue stream. Guess it didn’t do well enough to continue once supply normalized.