Uncategorized on 31 Jul 2008
Leasing Losing its Luster for Many Auto Dealers

Auto makers are cutting back on their leasing options for wannabe–new–car owners, especially those rare people who still want to get into an SUV or big pickup. What’s the reason? Falling used car values, i.e. the “residual value” at lease-end that is used to figure what the lease payments need to be has fallen as much as 26 percent because fewer people are willing to buy gas guzzlers these days. Pair that with a rising concern about tightening credit markets, and it turns out there aren’t many financial people in the car business willing to take on a lease.
Here are just a few of the manufacturers who are having trouble with their leasing programs:
- Chrysler: will suspend offering new leases on Friday
- Ford: lease rates will rise on big vehicles
- General Motors (GM): “weeding” out riskier credit customers
- Nissan: having trouble with their leasing program because of potential losses
Gotta buy? Get the best price with an auto buying service!
With leasing options falling to the wayside, more consumers are going to have to purchase their vehicle outright. This means you may not be getting that luxury car you could only afford with a lease, but it doesn’t mean you can’t still get a good deal. One option is to turn to an auto buying service to help you search for the best price on the vehicle of your choice, and it offers the added benefit of eliminating the need for you to deal with the dreaded car salesman. A number of financial institutions offer free auto buying services, including Tech CU.
Our service, The Car Store, is free and all requests can be conveniently submitted online.
Here’s how it works:
- Go to the dealer and test drive the vehicle of your choice.<
- Decide the exact make, model, upgrades, color (interior/exterior), etc. that you want.
- Call, email or submit your specifications online.
- A consultant will work directly with you to help you find what you’re looking for, and they’ll find you the lowest possible price for that vehicle. They’ll even deliver the car right to your doorstep!
As an extra incentive, Tech CU will also offer you a .25% APR discount off of your approved rate for purchasing through The Car Store.
You can also turn to one of the many independent personal vehicle shoppers around the Bay Area. Doing a simple Google search using the keyword ‘Auto Buying Services’ will provide plenty of names. Here’s a link to a recent article on the “Burgeoning Trend in Car Buying: Using ‘Personal Shoppers’ Instead of Dealerships.”
One last note: before working with anyone, you may want to check out Yelp! to see if the personal vehicle shopper you’re considering has been reviewed (positively or negatively). It’s a great resource for services like this.











































