Auto makers all around the country are scaling back mostly because of the tough economy. One change that consumers are seeing is that auto makers like Chrysler, GM and Ford are pulling back on lease options. So what does this mean for you? LeaseTrader.com joined us to talk about the situation and how it affects you.
So recently a number of the large car companies decided to cut their leasing business or cut back the number of leases that they write. Tell us about these changes.
"The first thing people have to understand is that not all vehicles make sense for leasing programs," said a LeaseTrader.com executive. "You have to choose what vehicles make sense to you. And leasing is all based on the value of that vehicle three or four years down the road. And when you combine the difficult economic times we are in, it's even harder to make those projections. The vehicles you'll be able to lease are going to be the ones with good residual values, like Mercedes, BMW, Land Rover and Cadillac."
So this pullback in leasing does have to do with the tough economy we're in now?
"You're going through a difficult economic time right now when the companies are really having a hard time making the residual projections, especially in the SUV and truck categories. So the vehicles that make sense to lease are going to be the four-cylinders, six-cylinders, or the more popular cars like Toyota Prius and Toyota Camry."
This story posted by LeaseTrader.com, the automotive service company that lets people transfer out of their Car Leases early. If you're looking to swap a lease or transfer out of your car lease, please visit www.leasetrader.com