I had no idea this was a thing at all! It makes sense now that nearly 1/3 of new vehicles are being leased and as automobiles become seen as “technology.” I can imagine CPO vehicles (especially under the same manufacturer’s financing arm) would be the main targets.

Imagine being a dealer, leasing the vehicle out for 24-36 months, getting it back and certifying that same vehicle to be leased again for 24-36 months and then selling it used 4-6 model years later with only 40,000-72,000 miles on the clock.

Advertisement

I’m seeing a future where the used market prices become inflated by these clean, low mileage, two owner vehicles which would then make leasing rates better and better until new cars turn into a “subscription service.”

Automakers have more control over the vehicles and easy data collection. Warranties become longer, automakers make more in vehicle financing since they can have the same car financed under themselves three times! It’s the same thing those pay-here lots do but completely legal, ethical, and will be praised for simplifying car ownership!

And those that actually buy new will see their trade-in values tank because they can’t compete with all these pristine, factory cared for cars available with higher and higher residual values that the automaker can come close to controlling themselves.

Sponsored

I wish they’d make these tin foil hats less itchy!