Can someone please explain to me (or link another thread that explains) why car leases are so much more expensive right now? I’ve leased my last 3 cars (all 3 were compact suvs with selling prices in the 21,000-23,000 range, all 36 month terms, and all with 12,000/miles a year). I have paid between …

[image] Shortages Affecting Auto Production: Semiconductor, foam, etc Off-Ramp Lol lots still empty My local dealer wants 5k for a 2wd Tacoma we not there yet + add ons

[image] Why arent leases cheaper now? Ask the Hackrs Why arent leases cheaoer now? Assuming you can get a car at MSRP, residuals are crazy high now with the used market. So why arent leases cheaper now? Are they assuming lower residual values than whats available now? …

[image] GreenGirl: It’s not like the car’s depreciation would be that much more significant, right? Thats actually a large part of it. On a lease, your depreciation is basically the difference between your post incentive selling price and the residual value (assuming youre not capitalizing f…

[image] GreenGirl: is there something that I’m missing here Not really. @mllcb42 basically explains it (RV hasn’t changed but the depreciation has b/c everything is selling for MSRP or above), and, in the vast majority of cases now, financing makes more sense (or, at least, isn’t any worse t…

I totally get what you’re saying regarding less incentives. But the cars I’m looking at right now have approximately the same final selling price as the cars I’ve previously leased. For example I’m looking at one right now that’s around $22,000 with no incentives, but I previously leased a $25,000 c…

$25k car with $3k incentive will always have lower lease payments than a $22k car with no incentives. That’s how the leases work since the RV is calculated based on MSRP (not sale price). Low lease payments happen with big incentives/discounts combined with low MF (i.e interest rates).

Aren’t these two threads the same lol [image] Why arent leases cheaper now? Ask the Hackrs For the giggles, I quoted vroom last month for my v90. $6k equity. Quoted them today, -$5k equity. I wonder if this will be a broader trend with RV’s to make leasing even worse. …

Cars are also going up in price quickly… I ordered a Jeep June 10th of last year… msrp of 60085. The same Jeep one year later is 66000. Money factors are also quickly rising. It’s time to look at buying.

Pretty much. I just wasn’t able to find it myself which was why I also asked for anyone to link a similar thread, so thanks :slight_smile:

Why are leases so expensive right now?

Ask the Hackrs

jeisensc June 22, 2022, 12:59am 4

tl;dr - Inventory is low, incentives are low-to-none, MFs aren’t especially low

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