What happens to a car after a lease?
03-16-15, 08:44 AM
#1
What happens to a car after a lease?
Just out of curiosity, what happens to a car after a lease? I have never leased a car in my life and am seeing them more prevalent today than ever. Do they go into used car dealerships? Auctioned? I tried googling but no definitive answers..
On a tangential question, if leasing outpaces the amount of people buying (new/used), wouldn't this create a leasing bubble?
On a tangential question, if leasing outpaces the amount of people buying (new/used), wouldn't this create a leasing bubble?
03-16-15, 09:35 AM
#2
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Leasing a vehicle is usually for a period of 3 years. This keeps them in relatively good condition and they can then be sold as certified pre owned on the used lot. I would venture a guess and say that the number of used car buyers far exceed new. These used cars can be transported anywhere in the US via the dealership network to get sold.
03-16-15, 09:54 AM
#3
Lexus Test Driver
Either or. If the car is in great shape and low miles they are put back on the lot, if not they get auctioned out bu a bank. The leased vehicle is owned by a bank, so if the dealer likes the car they will buy it from the bank and put it on the lot as used car or CPO. I would say far more people buy new/used then Lease.
03-16-15, 10:33 AM
#4
Lexus Fanatic
They're destroyed and recycled into bridge components and metal belt buckles.
03-16-15, 11:03 AM
#5
The dealer that takes the lease return in has an opportunity to buy it from the bank and sell it as a used car, usually as CPO if they can do that as well.
If the dealer doesn't, they're taken to various auctions, some are closed auctions where only dealers from that manufacturer can bid on them, potentially also for CPO sale, or sometimes open auctions where any dealer that has access to that particular auction can bid on it.
Leasing represents about 40% of luxury car sales, and low 20%'s for mainstream cars.
If the dealer doesn't, they're taken to various auctions, some are closed auctions where only dealers from that manufacturer can bid on them, potentially also for CPO sale, or sometimes open auctions where any dealer that has access to that particular auction can bid on it.
Leasing represents about 40% of luxury car sales, and low 20%'s for mainstream cars.
03-16-15, 11:23 AM
#6
I see guys, thanks! It seems like the newer cars that are leased here outnumber the people that buy (at least in the 3IS section). But it might just be the nature of luxury cars (BMW especially), whereas someone who is looking for a Camry or an Accord might be in it for the long haul and buy. This made me wonder where the heck these leases went when they're up 
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