Thanks for the link, @snoopy.
That is interesting.
If I had to guess on why they were having a hard time selling the used leased vehicles, well, look at the brands.
When someone leases a vehicle, they’re basically paying for that car’s depreciation (plus overhead and profit) over the term of the lease.
Most American-branded cars depreciate substantially more than foreign competitors the first day they’re driven off the lot, and they depreciate faster over time.
Example, I’ve heard of Cadillac lease rates over $700/month. That’s substantially more than a 5-year, 6% APR car payment on a $33,000 vehicle. Granted, most Caddies cost more than $33K, but you’re only supposed to be paying the depreciation on the thing over something like 2 years.
It’s interesting to me that the article cites lackluster sales of used lease vehicles as the key factor. Somehow, I doubt that’s the whole story. I’d like to think consumers are wising up to the “fleece” game and that it’s just not competitive for GM and Chrysler to offer that service themselves.
One thing’s for sure… if you want a good deal on a Cadillac, buy it used.