Toyota is facing the challenge of off-lease vehicles coming back in large numbers with a creative approach – leasing them back to other consumers as certified pre-owned. This is happening during a time when off-lease returns are expected to double for the Toyota and Scion brands – and for a few other automakers.
The national rollout that started in the Northeast in January will continue as individual regions get their dealers trained, said Tom DeLuise, national Toyota certified and rent-a-car sales and operations manager at Toyota Motor Sales U.S.A. Dealer staff should be ready and trained by late April, during a time off-lease vehicles will start returning in big numbers. Toyota expects that its certified sales will increase through this leased used cars by about 8% this year – to 400,000 units sold.
Manheim has forecasted that about 3.1 million off-lease vehicles will return to the market in 2016, up nearly 20% from almost 2.6 million in 2015. That pool of vehicles is expected to grow to almost 3.6 million in 2017 and almost four million in 2018.
Used car leasing and CPO is usually appealing to car shoppers. Buyers can typically reduce anywhere from $40 to $125 per month from their monthly payments by opting to lease used instead of new through franchised dealers.
According to Edmunds, the following automakers’ captives financed used car lease deals in 2015: Acura, Audi, BMW, Chrysler (which includes financing for vehicles from Dodge, Fiat, Jeep, Ram, and SRT), Ferrari, Honda, Hyundai, Infiniti, Kia, Lexus, Lincoln, Mazda, Mercedes-Benz, Mini, Mitsubishi, Nissan, Porsche, Toyota, Volkswagen, and Volvo.