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re: Thinking about leasing a vehicle

Posted on 12/22/16 at 11:11 pm to
Posted by Retrograde
TX
Member since Jul 2014
2900 posts
Posted on 12/22/16 at 11:11 pm to
quote:

Because of this, cars that lease well typically have lower resale value in the used market (why by used when you can lease new for cheap?) and cars that don't lease well hold their value better.



Not necessarily. Toyotas/Hondas lease well because of their residual, and still have good resale because of the quality of the product. Car makers incentivize leases because people usually lease again after their lease is up. Same thing with big rebates for trucks; dealer offers massive rebates, but trucks hold their value because they are trucks and the massive rebates are factored in to the used car market.

Going in and out of leases works well if you don't drive many miles, good credit, and don't bang your car up. The problem with leases is they are not very flexible and you always have a note, but for the 15% of drivers it works for, it works well.

Posted by 632627
LA
Member since Dec 2011
12870 posts
Posted on 12/23/16 at 9:24 am to
quote:

Not necessarily. Toyotas/Hondas lease well because of their residual, and still have good resale because of the quality of the product.


when i say lease well, i mean compared to their msrp and a financed monthly payment, as the lease features an artificially inflated residual value to make the payment more attractive. these models usually don't retain their value as much on the used marketplace.
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