Quote:
Originally Posted by DementedReality
fair points, its not always as simple as it seems BUT if leasing was good for them they wouldnt steer people away from it. this seems to me that it means the programs favoured the consumer. otherwise why would they steer people away from it now?
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Changing market conditions.
When things looked good, there were people buying new cars, used cars, and leasing cars. When things downturn, the leasing incentives make the market shift away from purchases, especially with credit becoming much tighter. The result would be the automakers with a glut of used vehicles they can't move. They probably already see people not buying out the vehicle at lease end.
By removing the incentives, they are attempting to balance the market. They will lose some business on the leasing side, but not as much as having a huge number of 2 year old vehicles sitting on car lots. At some point in time, the vehicles need to be sold to somebody.
So it may not be as much "The consumer was getting too good of a deal" as much as when leases expire the automakers having to tough time at that point.