Quote:
Originally Posted by DementedReality
further evidence that leasing is heavily in favour of the consumer.
if it wasnt and was a money maker for the car maker, no chance they discontinue it.
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It's not that their discontinuing leasing, it's that they're no longer going to offer any type of incentive deals to lease. If a lease rate is 8% and they're making you pay 75% of the vehicles value with that lease over that 3 year term....than it's probably going to steer a lot of people away from leasing. But for businesses and those who can write off a lease, they probably still opt for the lease. I'm not quite old enough to know how car buying was done in the 80's or the front half of the 90's, but I can't remember leases being competitive with purchase financing. Most people were buying their vehicles, and only business type people leased. Nowadays leasing is something that Joe Consumer does for his personal vehicle and I think the car companies are going to try and steer him back into buying.
I own one vehicle and lease the other in my family. The vehicle I own hardly ever gets driven, and at this point I consider it to have lost all value even though it's only 6 years old and only has 30,000 k on it. I have it, so I'll keep it and I don't use it that much, I can drive it for another 10 years easy and it won't bother me, I've accepted my role in society as a poor schmuck and no longer need a good vehicle to drive myself. But I had every intention of turning in the leased vehichle in two years and leasing another. By the time that two years is up...it's likely that leasing another vehicle won't be an option for me.