Dog Days for Car Leasing – Or Opportunity with a Capital ‘O’?
For many of us, it comes as no surprise that the major new car manufacturers, dealers and institutional lenders like GMAC are eliminating once popular but increasingly unprofitable auto lease programs that put car-buyers into vehicles they couldn’t otherwise afford to purchase. Dealers, banks and manufacturers are getting stuck with turned-in lease vehicles with few interested retail buyers and collapsing wholesale values. While the auto market and housing markets are vastly different, the current lease program problems do mirror the current housing market crisis in several key respects: with homes no longer worth what homeowners paid for them and the secondary market in turmoil, troubled lenders have eliminated most of the low-cost, low-down financing programs that during the real estate boom helped American families qualify to buy homes they couldn’t otherwise afford at terms they could not afford to pass up.
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