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Re: Lease programs contributing to high depreciation...
Posted by Atul (more from Atul) on Thu, 24 Jun 2004 13:42:42
In Reply to: Lease programs contributing to high depreciation..., James D, Thu, 24 Jun 2004 13:08:33
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Basically whether it's low interest, rebates or subsidized leases, the less people pay for a vehicle, the less they are willing to part with it for when they resell it. That reduces resale values. It all starts because people won't pay the original price of the vehicle so they require incentives to buy them, signaling that the car is not worth as much as the MSRP on the market.
The forgotten side is that if you buy a $30,000 car for $25,000 and the residual at some point makes your car worth 50% of MSRP or $15,000, your effective residual percentage is $15,000 / $25,000 or 60%.
Atul
posted by 207.74.177...
Posts in this Thread:
- Lease programs contributing to high depreciation..., James D, Thu, 24 Jun 2004 13:08:33
- Back in the mid 90's......., Mike Lynch , Thu, 24 Jun 2004 14:41:56
- All good points, as usual, Mike, but does a typical, Noel, Fri, 25 Jun 2004 08:02:05
- Re: Back in the mid 90's......., TML , Thu, 24 Jun 2004 19:59:12
- Free maintenance is over-rated..., James D, Thu, 24 Jun 2004 19:27:47
- Good Points Mike...but I'll add something>>, PGAero , Thu, 24 Jun 2004 15:49:00
- We need Mike Lynch in here, as he deals with this daily, Noel, Thu, 24 Jun 2004 14:17:43
- Re: Lease programs contributing to high depreciation..., Atul, Thu, 24 Jun 2004 13:42:42 <-- Viewing This Message
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