Cars whose leases are up flood the market, pushing prices down – Los Angeles Times

In 2014, Infiniti leased more than 28,000 Q50 luxury sedans for as little as $329 a month in a growing U.S. market. The leases accounted for more than three-quarters of Q50 sales.

Now they’re coming back to haunt the automaker.

Like many companies that juiced sales with sweet leases during the past few years, Nissan’s luxury brand now faces a hefty supply of nice, low-mileage used cars at a time when most people want SUVs. For the U.S. auto industry, about 3.5 million vehicles will come off lease this year, after 3 million returned last year, according to Automotive Lease Guide. These are huge numbers, considering that leasing all but came to a halt about a decade ago during the Great Recession.

The numbers signal three shifts in the market:

Comments

Write a Reply or Comment:

Your email address will not be published.*