What is the problem with the lease car and ... - Financial Crossing

American car companies recently announced that they had problems with the lease and reduce or eliminate the lease financing options. What does this mean for consumers automobile?

American car companies have relied on large SUVs and trucks, and have a lot of leasing, artificially inflated residual values ??of lease-end, keeping the attractive low-support payments. As gas prices have risen, the resale value or residual effectiveThe values ??of these vehicles, we have a short dive. That is, if customers lease vehicles returned at the end of the lease, companies take a huge financial loss if the vehicles are auctioned.

The car company to rent losses, consumers have been won. Those who leased SUVs and trucks have had to pay higher gas prices, but do not have the huge financial losses if they have taken a vehicle would be purchased. ThenLeasing has a problem with the car, but a benefit to automotive consumers.

As a result, American consumers expect car rental rates higher for large vehicles to see. Foreign car manufacturers are not so affected because of their greater emphasis on smaller vehicles with fuel efficiency. Unfortunately, the reaction of the American car companies, their problems only waste additional rent for non-US brands, which continue to offer interestingLease.

Location continues to be a good alternative for those looking to purchase low monthly payments. Even as an American car manufacturer discounts and 0% loans, lease rates for the same vehicle, offering the same conditions, will be even smaller ? although to increase lease rates. Only by offering long-term loan to the head of 72 and 84 months, hoping to compete with the lease. For consumers, are long-term loans are not intelligent and it is a pity that American car companiestry to convince customers to the contrary.

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What is the problem with the lease car and American car companies?

Source: http://www.financialcrossing.com/what-is-the-problem-with-the-lease-car-and-american-car-companies/

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