Re: Price seems on the high side but... - Saab 9000 Bulletin Board - Saabnet.com
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Re: Price seems on the high side but...
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Posted by pursang (more from pursang) on Mon, 24 Mar 2003 11:23:01 Share Post by Email
In Reply to: Price seems on the high side but..., George Tuma, Sun, 23 Mar 2003 14:31:47
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I agree with you. The monthly carry is cheaper on a new car than a used car of the same retail price because of factory financing that is almost at zero on average, used car loans are at much higher interest rates. Plus the warranty matches the lease term so you can limit your out of pocket risk.

I have been saying for a long time that leasing programs, while benefiting new car sales volumes in the short term, would cause havoc in the used car industry. We are on about the fifth or sixth year of significant dealer sponsored lease programs (in the old days you had to go to a leasing company and have them buy the car from the dealer before they would lease it to you). Now all of those used cars, and typically luxury or sports cars, are being turned back to the dealers at the end of the lease, and the economy is in a slowdown. Laws of supply and demand will force used car prices down.


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