Porsche today said it now holds 35.14% of the voting rights in Volkswagen group, Automotive News is reporting. Porsche said that as a result VW has now become a subsidiary of Porsche Automobil Holding under German law. Click here for the full story from Automotive News or here for The Wall Street Journal‘s coverage.
Until fairly recently, leasing was mostly limited to the new car market. We have seen a lot of interest lately from buy-here, pay-here dealers who are contemplating lease-here, pay-here as an alternative. The residuals issue is, I think, less of a problem in this market, and there can be some significant operational advantages as well, such as (in some states) the imposition of sales or use taxes on the monthly payments rather than up front. Anyone considering leasing needs to consult legal and accounting folks, though – it isn’t just another form of financing.