CARY, N.C. -

Industry experts like Swapalease.com executive vice president Scot Hall are trying to get a handle on the used-vehicle market — a segment that will be influenced by interest rates expected to continually increase in 2018, despite the recent stock market sell-off, and wholesale prices continuing to fall this year, mostly due to rising supply.

Sharing additional insights with Nick for the Auto Remarketing Podcast about a recent project Swapalease.com orchestrated, Hall dissected how rising interest rates and falling residuals may impact payments of potential vehicle-lease customers arriving at your dealership or applying for financing through your institution.

Swapalease conducted an analysis taking into account a typical vehicle with an MSRP of $35,000.

Here are the assumptions:

— Term: 36-month lease
— Residual: 49 percent
— Interest rate: 4.00 percent
— Monthly payment: $604.83

Here are the breakdowns at varying interest rate levels, as well as a residual rate of 49 percent and 50 percent:

Residual Money
Factor		 Monthly
Payment
 50%   3.00%  $573.51
 50%  3.25%  $579.05
 50%  3.50%  $584.60
 50%  3.75%  $590.15
 50%  4.00%  $595.69
     
 49%  3.00%  $582.79
 49%  3.25%  $588.30
 49%  3.50%  $593.81
 49%  3.75%  $599.32
 49%  4.00%  $604.83

 

Hall described these figures in more detail in the conversation available below.

Download and subscribe to the Auto Remarketing Podcast on iTunes or on Google Play. 

You can also listen to the latest episode in the window below.

All episodes can be found on our Soundcloud page or by visiting www.autoremarketing.com/ar-podcast.

Please complete our audience survey; we appreciate your feedback on the show!