Leased cars a hot commodity as pandemic pushes car prices up
Why? COVID has had a domino effect on Car prices. Because of Auto parts shortages, there are fewer new cars to buy, making them cost more. That has driven up the cost of used cars. And this is now reflected in the residual value of lease cars.
Deciding on that figure was once pretty straightforward, but things have changed.
Michelle Austin of Castro Valley tells 7 On Your Side, “The used Car market is extremely expensive right now.”
Yes it is, and that is working for her. The Car she leased nearly three years ago is worth way more today than expected.
Edmunds.com’s Ivan Drury says Austin is not alone.
“Your vehicle is worth a lot more than you think,” he says, “and that’s where you have some great options if you’re in the market right now.”
He says all dealerships want your cars — they need cars to sell. “You know if it’s 1, 2, 3 years old, it is a hot commodity, right now.”
That’s what Austin has done. She thinks she could net as much as 10 grand.
“I’m definitely looking at outright purchasing the Car,” she says, “and then turning around and making a private sale and then using that capital that I gain from it.”
The average used Car is now listed at $26,000. So there can be a lot of money there, especially for those who leased.
Take a look at more stories and videos by Michael Finney and 7 On Your Side.
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