# End of Leasing?

**URL:** <https://forums.speedlife.net/t/end-of-leasing/52335>\
**Category:** NYSpeed Automotive\
**Created:** [July 29, 2008, 7:00am UTC](https://forums.speedlife.net/t/end-of-leasing/52335 "2008-07-29T07:00:51Z")\
**Posts on this page:** 1\
**Showing post:** 57

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**Author:** ![Nikuk](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/nikuk/32/7254_2.png) [@Nikuk](https://forums.speedlife.net/u/Nikuk)\
**Post date:** [August 5, 2008, 6:42am UTC](https://forums.speedlife.net/t/end-of-leasing/52335/57 "2008-08-05T06:42:27Z")

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> [@JayS](#):
>
> How much risk is there in auto loan financing? Car insurance is mandated, you can choose who to lend to and base your interest rate on risk, and if they default you take back the car.
> 
> I understand the risk in leasing because you’re making an educated guess what the used car market will be like in 2-4 years for that model. Guess wrong and you’re screwed like GMAC.

repo is not exactly a cheap option, especially considering the high rate of unintentional damage done to the asset as well.

risk based pricing can lead you to be non competitive in pricing / terms.

You know how the “sub prime” mtg “victims” were bad underwriting approvals? Think about the 19 yr olds with 7 yr loans on Escalades rolling on $10k 30" rims…

etc

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