But look on the bright side. If the residual is higher than market value, walk away at the end of the lease...you're a winnah!!

Then offer to buy the car/SUV at market value. You've driven it for the period of the lease for much less than the true cost to the manufacturer/lessor.

The loss to the lessor is the difference between the residual and the market value....and the lessor doesn't incur it until the lease is up. So the problem is generally 25-33 some percent as bad as the total, but it's going to go on for 24-39-48 months or until the newest lease (this year's before they stopped digging a hole!) expires.

Who knows..gasoline is dropping, it may drop below $4.00/gal in SOCAL and the market will adjust to higher priced gas...AS LONG AS IT IS AVAILABLE! That's the key...when it is no longer available like in 73 when it was rationed by limited supply, THEN all hell will break loose.

I predict the market will absorb this shock too....those with SUVs should just ride it out until their SUVs reach the end of their service life and junk them. Take a 4-8K loss in 4 years (and pay maybe 1K-1500$ per year more for gas in that time) rather than take a 15-25K loss now and end up in a tin can POS Kia or Honda.

Me? I'm still gonna get a 580hp Audi RS6 if they ever ship it to the US. The 2WD ZR-1 and M5 and M6 500+ hp cars aren't really streetable..have to pay too much attention. But AWD...shine or rain, they're pretty stable. Same with AWD Saabs....

posted by 68.55.18...

• GM cutting back on lease vehicles, philB, Thu, 31 Jul 2008 14:09:59
  • GM Canada ends leasing today, SClifford, Fri, 1 Aug 2008 08:04:47
    • high MSRP in Canada..., LesH, Fri, 1 Aug 2008 11:45:55
      • Re: high MSRP in Canada..., SClifford, Fri, 1 Aug 2008 12:38:38
  • I saw where Chrysler is no longer going to, Noel, Thu, 31 Jul 2008 14:48:58
    • Lease residuals unfortunate, SJohnB, Thu, 31 Jul 2008 17:36:06 <-- Viewing This Message
      • "you're a winnah!!" closed end leases..., Mike Lynch , Fri, 1 Aug 2008 09:48:18
        • Re: "you're a winnah!!" closed end leases..., CrNiFe , Fri, 1 Aug 2008 10:23:15
          • hail damage is compensable by insurance., SJohnB, Sat, 2 Aug 2008 08:26:04
      • A bit like the commodities market, PT, Thu, 31 Jul 2008 21:42:42
  • Residuals vs auction..., Mike Lynch , Thu, 31 Jul 2008 14:48:29
  • I would buy in a minute...., Ron, Thu, 31 Jul 2008 14:27:45

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