![]() They’re just not supported as they were before. You’re also seeing higher interest rates - on a lease, that’s called the money factor. “You used to see a lot of dealer cash - $2,000 off on a lease. “What’s even more challenging is that a lot of captive companies are pulling back on incentives and rebates,” Sin said, referring to the customer-financing arms at most automakers. The reasons for this shift come down to a combination of factors: higher MSRPs, reduced incentives and increasing rates for the money factor, the equivalent of an interest rate for a lease. … Now, I would say leasing could still be an option, but it’s no longer a no-brainer for most models.” “That was because manufacturers were overproducing cars they were basically giving them away and arguably losing money on them. “Prior to the car shortage, leasing was a no-brainer for a lot of customers,” Sin told. ![]() Michael Sin, cofounder of Leasehackr, agrees that leasing was once an obvious choice for car shoppers looking for lower monthly payments, but that’s no longer the case. In fact, it’s not uncommon now for a loan payment on a Porsche Cayenne or Range Rover Sport to be cheaper than the monthly lease payment.” photo by Kelsey Mays To Lease or to Buy? “Multiple factors are contributing, but leading cause would be the lack of inventory that is pushing up prices, which can negate the payment advantage that leasing traditionally has over loans. “Leasing is being challenged right now in a way not seen since the Great Recession,” Jominy said. Power’s vice president of data and analytics, the lack of inventory isn’t just shrinking cash incentives for a vehicle purchase - it’s also raising lease prices. Leasing a vehicle typically equates to a lower monthly payment than financing the same purchase, but the inventory shortage has turned even that pragmatism upside down. If you’re considering leasing a vehicle in the coming months or you have a lease that’s ending soon, here’s how the current situation will affect vehicle choices, monthly lease rates and lease buyout. As manufacturer incentives sink and transaction prices continue to rise, the inventory shortage has also shaken up car leasing. Some shoppers have the luxury of waiting out the ordeal, but others have no choice but to dive into turbulent waters. Demand for new vehicles is higher than automakers’ abilities to keep up building them, and used-car inventory is shrinking even as prices surge to record levels. The incessant inventory shortage has left no corner of the auto industry undisturbed in its wake.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |