With “The big three” Exiting Auto Leasing, Dealerships and Local Lenders Move to Fill the Gap
Once upon a time just about anybody could walk into a new car dealership and, with little or no money down and minimal hassle, drive away with a luxury car or SUV that they otherwise couldn’t afford – courtesy of a thriving economy and always-willing auto lenders like GMAC and the national banks.
Lease deals, it seemed, were good for everyone. Consumers got more automobile for their dollar, low monthly payments and a new car every two to four years. Lenders streamlined qualifying criteria and underwriting to fill their pipelines with loans and earned a satisfying return when they packaged and sold them to investors. And dealerships essentially got two deals in one – the lease transaction and the subsequent trade-in sale when the lease expired.
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