Leasing of cars , and auto /truck /SUV leases are not old hat. Leasing as per auto sales as well as fleet sales has all been done before. Previously the market niches targeted for this strategy were mainly luxury vehicles - especially of the domestic big three automakers – GM, Ford & Chrysler. It was upper end vehicles Cadillacs , large SUVs , luxury trucks . One might also include flagship niche specialty automobiles. Yet again low interest rates make for new and interesting calculations as well as sales ploys and tactics. Its one new ball of wax for truck & car dealers, their sales managers and finance guys.
Yet Toyota led the way back to leasing for the “masses” . “Toyota is using $199-a- month leases on its Camry to keep it the top-selling car in the United States, much as it did to recover from record recalls and Japan’s tsunami. Now it’s pulling the rest of the industry with it.
Once primarily a tool for selling luxury vehicles, leasing is becoming common among hot-selling family sedans, such as Ford’s Fusion and Honda’s Accord. Supported by high used-car prices, low interest rates and Americans’ tendency to buy vehicles based on the monthly payments, U.S. auto leasing is at the highest levels in at least a decade and pacing the industry’s best year since 2007.”
Yet what for the average Ford truck or perhaps mid-range Crossover SUV. Is leasing the upcoming wave of the future , when it comes to upcoming and future auto sales that affordability of low interest rates allow for or is just a passing fad ?
It might be said in debate by many Bill Simpson north end Winnipeg types that if you purchase a vehicle outright or buy it the “good old fashioned way ” with car payments the automobile is your chattel – your property at the end of the day . Standard auto financing and auto finance remains the standard ever yet.
Yet the costs of auto repair and service are tremendous . Its not as if you can go to your corner garage anymore for a botched job. Parts are expensive. Its hard to get around under the hood in our modern high mpg , fuel efficient vehicles. While it might be said that at least you have equity – its a forced saving on an investment negative item that requires costly upkeep. Perhaps all in all leasing has its merits in that with new or newer vehicles not only do you not have costly repairs at your local auto dealership but also a hard and fast new car warranty and also coverages in case of manufacturer recalls and you being the primary owner according to Canadian case law.