SUVs Not Just Bad For Planet, But Also Killing Lenders
by Lloyd Alter, Toronto on 07.28.08
Car as planter, Kensington Market, Toronto Image tionista
Leasing has been a popular way to buy a car; The lessor estimates its value three or four years down the road and you pay the difference, plus interest. So what happens when they guess wrong? What happens when there is virtually no resale value to the SUV when it comes off lease? We are beginning to see, as Chrysler closes down its leasing division, saying We've reached a point, in this environment, where the economic advantages of leasing have really disappeared." Ford has also taken a $2.1 Billion write-down on its leasing unit. An entire industry could disappear: "Leasing is based on the premise that you can somewhat accurately predict where values of cars are going to be," said Tom Webb, chief economist at used car auctioneer Manheim. "Right now, nobody has been able to do that."
Perhaps they will have to turn them all into planters. ::John Taplin
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I want to laugh and say "I told you so" but that's pretty childish and stupid because I know that the government will probably bail these lenders out with my tax dollars. The government gives consumers an incentive to purchase these ridiculous vehicles with my tax dollars and then will have to bail out the lenders with my tax dollars (probably). And what do the people who had the foresight not to buy an SUV in the first place get? A bloody stain on the back of their pants? Unbelievable.
I'm with stradric. Are we the only people who saw this coming?
Hey, I've seen this. I took a photo of it a few weeks ago :)
http://www.flickr.com/photos/polvero/2693455088/