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Why are so many people leasing vehicles for only one year? Now the market is flooded with used cars.?
I am so frustrated to see so many used cars on the market. The market is flooded and so it is difficult to sell a used car. I just found out Companies allow one and two year leases, not the normal three year. I was told they make more profit that way and the person moves on to another vehicle to lease. They can drive a new car each year. Sounds like fun but is it practical?
This practice has pushed the Car Manufacturers to make many more vehicles than they normally would and it puts a strain on our natural resources.
Should people be allow to lease for only one year?
Where do all these used cars go when they can not be sold?
4 Answers
- jayLv 71 decade agoFavorite Answer
There is nothing wrong with allowing people to lease for a year or two, and it certainly does not hurt the used car market. What hurts the used car market for many makes is the fleet sales. When GM, Ford, and Dodge sell tens of thousands of cars as rentals, they come back, flood the market and subsequently drive the values down.
But for the right person, a two year lease is good, and it's good for the economy as people keep spending.
Source(s): bmw client advisor - 1 decade ago
the used cars would be sold. there are people that only buy used cars to save money.if you lease a car for 3 yrs. you would have paid for it any way, you also save on repairs, new cars only last 3 yrs then they start giving you trouble anyway,the way they make new cars now when they break down will cost you an arm and leg to get it fixed.
- FerretLv 41 decade ago
Supply and demand...if the supply shoots through the roof and the demand goes down, then suddenly "nearly new" cars are much cheaper than before and people who otherwise would drive older, more polluting cars can get into something newer, more reliable, and better on the air.
Sounds like a GREAT thing to me.
- 1 decade ago
I think that people get into buying a car then realize they really can't afford it so it gets taken back or sold.
