An Idea to Raise Remarketing Values

I think that most people are inherently good. Find a wallet, turn it in. Witness a car accident, stop to make sure nobody is hurt. Lease a car, drive with the pedal as far from the metal as possible. 

I am expressing an opinion, because I don’t know of any studies that have been done, but it’s my belief that leased vehicles are not as well maintained as purchased vehicles because the owners know that they will be returning the vehicles when the lease expires. The very nature of a lease transaction reaffirms that the vehicle is owned by the lessor and is technically not the owner’s property. Especially as a lease term draws near, lessees must start to care less and less about the condition of their vehicles. Maybe oil changes get skipped; a car is driven with brakes that may need work, or a piece of black tape is placed over the “Check Engine” light to make the problem “go away.”

Lessors do require vehicles being returned to undergo an inspection to determine if the lessee needs to pay for any additional repairs, but I think that there is a better course of action to obtain the highest remarketing values possible. Lessors should take responsibility for maintaining leased vehicles. 

I’ve heard of dealerships that offer free routine maintenance as a perk to customers buying cars. Free oil changes or car washes, for example. Why aren’t lessors doing that, and more?

I think that short of a customer getting into a car accident — which is usually covered by the auto insurance lessors require lessees to carry — all standard maintenance should be the responsibility of the lessor. 

When I say standard maintenance, I’m referring to oil changes, brakes, mufflers and exhaust systems, and the like — repairs that aren’t covered by the warranty. 

I’ll be the first to admit that the idea is a little impractical. How does a local Honda dealership bill American Honda Finance for a brake job? But I think there could be a significant long-term savings by being able to remarket end-of-lease vehicles at higher prices. Because most leases are made on new vehicles, there is a less-likely chance repairs will be needed. Especially major repairs. But it’s the minor repairs or preventive maintenance that are often overlooked by vehicle lessees. 

I think the potential for increased revenue outweighs the impracticality. Putting the onus on the lessee is the most fiscally practical solution, but it carries no guarantee.Taking responsibility for maintaining the vehicle is the most direct way for a lessor to ensure that the vehicle is coming back in the best possible condition.