Originally Posted by supton
Makes me wonder, why not?
I mean, they could lease a model for 1-3 years, then turn it around as a CPO. By acting as the bank for both transactions, they can use whatever APR they want--they can just charge more upfront for a lower APR. Just like they do for 0% on new car sales. Makes the OEM into more of a financial institution than a car maker, but hey, follow the money.
I guess a manufacturer *could* do something like that on a CPO unit. We'll use the CPO that I just bought two weeks ago as an example. 2017 GMC Sierra SLE 4x4, it was leased under an "ultra low mileage lease" from new, of course finananced though GMAC. Leasee turned it back in after 2 1/2 years and 15,900 miles, and GMAC sent it directly to the GM dealer auction. GM dealer buys it, it easily passes its CPO inspection, and they sell it to me. This truck looks and drives the same as new, even still has 9/32" of tread on the original tires.
I could see GMAC offering a special "CPO vehicle" financing rate on a truck like this, since the first owner had leased it through GMAC, and it was being re-sold as CPO through a GM dealer. However, I wouldn't see them (GMAC/GM/whoever) wanting to go past another 36 months on an arrangement like this. At that point, my truck is now pushing 6 years old, and the risk is going way up, as the drivetrain warranty is expiring or has already expired. New leased vehicles are covered by a bumper to bumper. Now, you're going into territory where the manufacturer is financing a vehicle that isn't covered by a B2B warranty. Another catch.
And for some, 36 months of financing just won't be long enough, when 60 and 72 months are so common now.
However for me, GMAC would have to offer me a rate of .9% (or less) to get my attention. It would have to be something that would soundly beat my local credit union's 2.9% rate.