Thanks to the faltering economy and high gas prices, banks and auto makers have lost billions because gas-guzzling SUVs, trucks and luxury cars aren’t selling for even close to their residual values. But their problem is your opportunity.
“…For instance, a chevy suburban you might have leased four years ago probably had an initial price approaching $50-thousand dollars and the value, the residual value at the end was probably estimated to be about 40% of that value…The value now may be as little as 25% of that…So that’s where you have the room to negotiate.” -Terry Jackson, Bankrate.com Automotive Columnist
And if the lease is up on your economy car, you might be able to buy it at residual and sell at a profit! Especially for a car like a Prius.
“I’d say definitely buy that car and resell it because a lot of used Prius are because of the fuel economy involved or whatever are actually selling for more than a new one.” -Terry Jackson, Bankrate.com Automotive Columnist
Bottom line? There’s unprecedented volatility in used car values right now. So if your lease is about to end, check out prices. You might find yourself driving a hard bargain.