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Earlier quoted context omitted.
Yeah, I'm not sure there is a large underutilized fleet of cheap, high value vehicles out there. (High value meaning predictable/reliable/etc, not necessarily sticker price)
Where do rental cars go after they're two or three years old? I've always wondered, but they seem like a stock of well maintained vehicles ready for leasing.
Earlier quoted context omitted.
Yeah, I'm not sure there is a large underutilized fleet of cheap, high value vehicles out there. (High value meaning predictable/reliable/etc, not necessarily sticker price)
Where do rental cars go after they're two or three years old? I've always wondered, but they seem like a stock of well maintained vehicles ready for leasing.
Earlier quoted context omitted.
Issue is lemons and adverse selection. New cars have probabilistic risk of defects. Used cars, not so much. Leasing depends (mathematically) on correct and reliable modeling of residual values. Once you get a starting pool of unknown risk [1], somebody is playing a fools game. Just a couple things to think about. https://en.wikipedia.org/wiki/Lemon_law https://en.wikipedia.org/wiki/Adverse_selection Edit: [1] State l…
Modeling failure of a used car doesn't seem that different to me than a new car. There is a distribution, probably more expensive for slightly used cars. It can be modeled and incorporated into price.
I don't have evidence, but I expect once you correctly account for the risk in your cost model, your pricing will be wildly unattractive.
A local company comes to mind, Lej et Lig (translated from Danish): http://translate.google.dk/translate?sl=auto&tl=en&js=n&prev... Literal translation: rent-a-corpse. You pay about $50 a day, choose your type (van, personal, etc.). They're mainly used when people move by themselves, have to take stuff to the junkyard and such. The down-side is, typically, that you can get a lousy car (playground for lemons). On the…
Earlier quoted context omitted.
Modeling failure of a used car doesn't seem that different to me than a new car. There is a distribution, probably more expensive for slightly used cars. It can be modeled and incorporated into price.
It can be modeled and incorporated into price. I don't have evidence, but I expect once you correctly account for the risk in your cost model, your pricing will be wildly unattractive.
A local company comes to mind, Lej et Lig (translated from Danish): http://translate.google.dk/translate?sl=auto&tl=en&js=n&prev... Literal translation: rent-a-corpse. You pay about $50 a day, choose your type (van, personal, etc.). They're mainly used when people move by themselves, have to take stuff to the junkyard and such. The down-side is, typically, that you can get a lousy car (playground for lemons). On the…
I look at that chart and just laugh. Why in the Hell would anyone buy a new car these days!?
0% APR + new car warranty + lemon law protection + 0 miles > whatever APR you get on a used car + 30 day at best warranty + 40k-60k miles