My buddy owns a deal
My buddy owns a dealership and buys majority of his inventory from auctions and leasing companies so watches closely the market. Toyota brand has a smaller % of lease vs. other brands as those hold value better (often stay in dealership inventory after being traded in) but 6000lbs segment tax incentive is big and those folks change vehicles often as it allows them to keep writing it off. It is a great incentive as at the end you are driving a 100k car for way less. He made comment that normally doesn't buy cars like Honda and Toyota as profit on resale is too low as resale values are high and prices stay high on auctions.
I think lease % may vary from region to region and age demographics in the region (ex NY, PA, etc have high number of cars hitting auctions). Lexus is typical bought by older people. Baby boomers are retired, have cash and wants reliable car. Places like AZ may have lower lease %. Number would have to be looked at by region.
Wats your source? I asked a similar question to local Lexus dealer in Northern VA, they said 8 out of 10 LX are purchases because there is no value in leasing ($$$). However they lease a ton of IS, RX all day long. I asked the same question to Land Rover folks, they answer was opposite, 8 out of 10 Ranger Rover was leased. Just a data point.
My buddy owns a dealership and buys majority of his inventory from auctions and leasing companies so watches closely the market. Toyota brand has a smaller % of lease vs. other brands as those hold value better (often stay in dealership inventory after being traded in) but 6000lbs segment tax incentive is big and those folks change vehicles often as it allows them to keep writing it off. It is a great incentive as at the end you are driving a 100k car for way less. He made comment that normally doesn't buy cars like Honda and Toyota as profit on resale is too low as resale values are high and prices stay high on auctions.
I think lease % may vary from region to region and age demographics in the region (ex NY, PA, etc have high number of cars hitting auctions). Lexus is typical bought by older people. Baby boomers are retired, have cash and wants reliable car. Places like AZ may have lower lease %. Number would have to be looked at by region.
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