because people started holding on
to old cars instead of getting new
ones. Add in a variable like high gas
prices and in the past five years
we've seen crazy things happen, like
the value of a used Prius topping
that of a new one, and diesel VW
Jettas commanding nearly new-Jetta
pricing. All of it has to do with carmakers being very careful with supply.
The Fuzzy Math of Leasing
Ricky Beggs of Black Book
explains that high residual value not
only favors frequent buyers and
sellers (or leasers), it also favors the
dealer.
Let's consider Mercedes
again. The automaker is fighting for
prestige in the luxury marketplace,
and that means the company would
prefer a tighter supply. So, for instance, Mercedes might offer its
dealers an incentive to buy back
current leaseholders' cars a few
months early and give them the
same lease rate on next year's model, especially at the start of a new
model's life cycle. This has two effects. One, it tightens supply of that
new model, in effect goosing demand so new customers have to pay
a little more. Two, it increases the
stocks of CPO cars the dealer has on
hand.
But doesn't that second factor depress the marketplace, since it
leads to more pre-owned cars sitting around? Not quite. That leasebuyback car the dealer gets on his
lot a little early when he puts the
customer in a brand-new C-Class
increases the dealer's cash flow. He
sells a lease on a brand-new C-Class,
presumably with money down. And
that tightened supply means the
"value" of that car is probably higher, too, so the check the dealer gets
from the bank/finance arm is fatter.
As for the leased car that's now a
couple of years old: It comes offlease, goes into the CPO program,
and the bank probably pays the
dealer for its remaining value, since
most customers finance their cars
and pay back the bank over time.
Remember: Either the dealer or the bank (usually a captive finance arm) actually owned the car
while the customer leased and
drove it. If the bank owns the car,
they sell it back to the dealer or to
another dealer and pay back that
difference to themselves once the
car comes off-lease. If the dealer
holds the paperwork, then they pay
the bank back for the difference and
move the car through their CPO
program, paying themselves back.
Either way, the lessee is just
making a monthly payment on the
projected depreciation of that car,
plus interest. ????????????????)?????????????????????????????)?????????????????????????)???????????)???????????????????????)?????????????????????????????)e????????????????????????)???????????????????????????)??????????????????????????????????????????????????????)???????? ????????????????????????????????????????????)???????????????????????????)????????????????????????????????????????????????????)?????????1???????????????????????)??????????????????????????)?????????????????????????)Q????????????????????????????)??????????????????????????????)??????????????????????????)???????????????????)]?????????????????)???????????????????? ?????)???????????????????????????)????????????????????????????)?????????????????????????)?????????????????????????????)????((