How will the Pull Back in Leasing Affect Consumers
How does the pull back in leasing affect consumers? There are many ways in which not being able to lease a car will determine what consumers do, and how they go about making a purchase, or perhaps not making a purchase. Buying a car is a very tough decision to make as it is, and not having the option of leasing on the table might make it even tougher. Here is how it can have some consequences for the consumer.
The first major decision that might be affected is that you aren't going to have as wide range of cars to choose from. Some people prefer to lease cars because they want something newer, but might only have the ability to pay the high payments for a couple of years, or maybe they only know how much they will be making for that period of time. What happens after two or three years and the payment remains?
Some consumers might be forced to buy something that they might not like, or be forced to stick with whatever car they have now as to avoid paying for something they don't want. This isn't good for anyone because it means a consumer is stuck with a car that they might not approve of, and it robs the dealer of some of the income that could come from leasing a vehicle out for a couple of years or maybe more.
The pull back in leasing might mean that people who were thinking about buying a car may reconsider if they can't even get a lease on a car. If they feel like they need to spend time upgrading their credit score in order to get a car, they might delay buying a car, even if they can get the car that they want. This will also hurt dealers who are already struggling if consumers don't feel like a deal could be done.
When consumers don't have access to options, the whole market is going to suffer. The consumer is going to suffer simply because they can't get to what they want. On the other hand, the dealer suffers because there is a lack of a market available to make sales to, and make a profit. This can force dealers to go out of business if the problem is great enough, and exasperate the problems that are already going on in the auto industry.
