Nashville-Davidson

Buying back these leased cars could net you the highest profit – Nashville-Davidson, Tennessee

Nashville-Davidson, Tennessee 2021-12-04 18:07:15 –

((((iSeeCars) – The lessee has a record used car price that is significantly higher than the calculated residual value.

  • The average three-year-old used car is worth 35.7%, or $ 7,952, above the residual value estimated at the beginning of the lease.
  • The most valuable vehicle compared to the forecast price is Volkswagen Tiguan, an increase of 69.4% or $ 9,820.
  • The market value of the leased car is significantly higher than the residual value, so the lessee can buy the car at the end of the lease term and sell it for profit.

Due to the shortage of microchips and the outbreak of COVID-19, the demand for used cars increased, and the price of used cars reached a record high. High prices and reduced inventories have created a difficult market for car buyers, but at the end of a car leasing, consumers can buy a car and sell it for a significant profit.

according to iSeeCars.comAccording to the latest analysis of more than 10 million car sales, the average three-year-old used car is worth 35.7%, or $ 7,952, above the residual value estimated at the beginning of the lease. increase. iSeeCars could buy at the end of the lease and sell at the highest profit, comparing the projected three-year residual value of new cars from 2018 to the current used car prices of cars three years ago. I checked if it was expensive.

“The dealer calculates the residual value of the vehicle based on the expected depreciation, which is fixed at the start of the car lease,” said Karl Brauer, executive analyst at iSeeCars. .. “Because the price of used cars is at record highs, the market value of leased cars is significantly higher than the residual value. That is, the lessee buys the car at the end of the lease period and makes a considerable profit. You can sell it yourself to get it. ”

Leased car to buy back and sell for the best profit

iSeeCars has identified the top 15 three-year-old vehicles with the largest difference in value from the estimated price. The difference between these cars is 1.4 to 1.9 times that of the average car. “All vehicles are worth more than predicted three years ago, but these are the cars where the difference between the current and predicted values ​​is the most important,” Brauer said.

Leased car to buy back and sell for the best profit – ISee Cars Survey
Rank vehicle $ Market value increases beyond forecast Increase rate of market value beyond forecast
1 Volkswagen Tiguan $ 9,820 69.4%
2 Volkswagen Passat $ 7,331 56.5%
3 Dodge Charger $ 11,642 55.1%
Four Mercedes Benz C Class $ 15,438 55.1%
Five Kia Forte $ 5,697 54.1%
6 Hyundai Elantra $ 5,960 53.7%
7 Chevrolet Camaro $ 12,483 53.4%
8 Jeep compass $ 8,212 53.2%
9 Nissan Leaf $ 6,742 52.8%
Ten Nissan Altima $ 6,642 52.6%
11 11 Mazda Mazda 6 $ 8,016 52.2%
12 Chrysler 300 $ 8,536 51.9%
13 Volkswagen Jetta $ 5,951 51.7%
14 Chevrolet Malibu $ 6,822 51.5%
15 Nissan Versa $ 4,353 50.6%
Overall average $ 7,952 35.7%

Volkswagen Tiguan is the off-lease vehicle with the largest difference from the forecast price, with an increase of 69.4% or $ 9,820. “Volkswagen Tiguan has more than doubled its sales in 2018 compared to 2017, thanks to a redesign that includes more space and a third row of seats, and has grown annually ever since.” Said Brauer. “When its residual value was estimated in 2018, it wasn’t as high as it is today.”

Eight small and medium sedans are on the list, including the Medium Volkswagen Passat, Compact Chia Forte, Compact Hyundai Elantra, Medium Nissan Altima, Medium Mazda Mazda 6, Compact Volkswagen Jetta, Medium Chevrolet Malibu, and Subcompact Nissan Versa. .. “Sedans usually don’t retain their value well because consumer preferences for SUVs are declining demand in the segment,” Brauer said. “The shortage of microchips has increased the stock and price shortages of used cars, and consumers looking for more affordable cars during the pandemic are increasing the demand for sedans.”

Two American performance cars are also on the list. The 3rd place Dodge Charger Muscle Car and the 7th place Chevrolet Camaro Sports Car. “Sports and muscle cars soared in popularity during the pandemic as buyers were looking for a fun car to fight boredom, and the Camaro Used car with the highest price increase More than last year, “Brauer said. A higher-end version of the Dodge Charger, the Chrysler 300 large sedan, is also on the list. “The Chrysler 300 may have increased demand as an alternative to traditional luxury cars, which were in limited supply.”

The Nissan Leaf electric vehicle is also on the list, 52.8% above the 2021 forecast price. “The 2018 Nissan LEAF has significantly expanded EV range, improved performance and a new look, making the current off-lease model more valuable than its predecessor,” Brauer said. I am saying. “Historically, EVs like the Nissan Leaf have fallen sharply, but rising gasoline prices and increased adoption of EVs among consumers have helped the Leaf maintain its value even more. . “

The Jeep Compass also creates a list. “The Jeep Compass is becoming less popular and usually doesn’t retain its value, probably because of consumer preference for other models within the Jeep brand,” Brauer said. “But the shortage of used cars took consumers to the compass when they might have considered other SUVs during normal market conditions.”

The list ends with the Mercedes-Benz C-Class. “The demand for luxury cars like the C-Class is skyrocketing, probably because of the reduced travel and entertainment during the pandemic, which gives buyers additional resources to spend on their cars,” Brauer said. I am saying.

Cars leased to buy back for the best profit By body style

iSeeCars compared body styles to see what was the most valuable compared to the estimated price.

Lease Cars to Buy Back for Best Profit in Body Style – iSeeCars Study
Body style $ Actual price – Forecast price % Actual price – Forecast price
sedan $ 8,037 46.5%
coupe $ 10,493 42.1%
Minivan $ 8,683 36.8%
Overall average $ 7,952 35.7%
Pick out $ 9,669 34.2%
hatchback $ 5,792 34.1%
wagon $ 4,615 32.9%
SUV $ 6,979 30.1%
convertible $ 4,545 15.8%

The sedan is the most valuable body style compared to the forecast price, and the convertible difference is the smallest. “Because consumers prefer SUVs, sedans are usually declining in demand and can’t maintain their value well,” Brauer said. “But as used car prices have risen and SUV inventories have run low, consumers have bought sedans because of their availability and relatively affordable prices.”

The increase in coupe value was the second highest and the increase in convertible was the lowest. “The popularity of sports cars has skyrocketed during a pandemic. Coupes are generally more in demand than convertibles, and convertibles are expensive and tend to have more depreciation, which can create a gap between coupe and convertible. There is a sex, “says Brauer.

“Consumers nearing the end of the lease need to look into the details of the contract to determine the residual value of the car and compare it to the current market value of the car,” Brauer said. “If the market value of their car is significantly higher, they can buy the car and sell it for themselves and make a big profit. They also use that equity for another lease or car purchase. You can, but if possible, selling the car in the private market is the most advantageous option. Consumers also pre-pandemic by selling the leased car at a higher price than expected. You need to remember that you can offset it by buying the next car at a price higher than the cost of. “

Consumers can use online tools such as iSeeCars to find the estimated market value of a car Free VIN check..

Other articles on iSeeCars.com:

methodology

iSeeCars.com We analyzed the sales of nearly 10 million new and used cars to determine if the 2018 model car is likely to be purchased at the end of the lease and sold at the highest profit. We estimated the three-year depreciation of new cars in 2018 and applied these values ​​to obtain the three-year forecast residual value. Next, we compared the predicted residual value with the average used car price of Model Year 2018 cars sold from August to October 2021. Models are ranked by the percentage of the difference between the predicted residual value and the average usage price, which is also at the body style level.

About iSeeCars.com

iSeeCars.com Car search engine This helps shoppers find the best car deals by providing important insights and valuable resources like iSeeCars. Free VIN check With a report The best car Ranking. iSeeCars.com applies big data analytics leveraging over 25 billion (and growing) data points and uses proprietary algorithms to objectively analyze millions of new and used vehicles. By scoring and ranking, we have saved over $ 306 million in users so far.

This article, The best leased car to buy back and sell for profitOriginally posted on iSeeCars.com.

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