kikbuti
Well-known member
Turning in my 2013 Leaf SL today. NMAC never offered a reduced residual price to buy my leased vehicle.
Lessors typically insure the residual value. Sometimes, lessors will enhance the established value listed in the Automotive Leasing Guide (ALG.) The amount enhanced is uninsured. Any difference in the insured ALG residual value and the actual cash value is paid to the lessor by the insurance company. Some insurance companies went bankrupt insuring the $99 per month Ford Pintos in the 80s as I recall. Some lessors self insure and that may be what NMAC is doing. The actual cash value is established by sale at auction. Sometimes you set a reserve (minimum) and sometimes you don't. The reserve has little effect on the sale price. If the reserve is too high, dealers won't buy the vehicle. Plain and simple. There are many other vehicles for sale. Sometimes, no reserve vehicles bring higher prices as no reserve auctions encourage bidding. Lease return vehicles are not auctioned at public auctions like repo auctions. The commercially accepted manner of establishing an actual cash value of a lease return vehicle is to sell it at a dealer auction.
Lessors typically insure the residual value. Sometimes, lessors will enhance the established value listed in the Automotive Leasing Guide (ALG.) The amount enhanced is uninsured. Any difference in the insured ALG residual value and the actual cash value is paid to the lessor by the insurance company. Some insurance companies went bankrupt insuring the $99 per month Ford Pintos in the 80s as I recall. Some lessors self insure and that may be what NMAC is doing. The actual cash value is established by sale at auction. Sometimes you set a reserve (minimum) and sometimes you don't. The reserve has little effect on the sale price. If the reserve is too high, dealers won't buy the vehicle. Plain and simple. There are many other vehicles for sale. Sometimes, no reserve vehicles bring higher prices as no reserve auctions encourage bidding. Lease return vehicles are not auctioned at public auctions like repo auctions. The commercially accepted manner of establishing an actual cash value of a lease return vehicle is to sell it at a dealer auction.