Indeed I was snide, and perhaps without justification.
If it is a true closed end lease and there is no residual / market value risk the drop in residual basically is transfer of risk, although the prices are virtually unchanged.
I checked the Mini.ca websight but they don't have their lease contract on it. I would call Mini Financial and ask what the difference if any there is in the conrtracts and end of lease risk. ( There were closed when I checked this.) If the 2004 and 2005 contracts are the same, it is a transfer of risk that has taken place rather than a price change. On the 2004 contract MINI is carrying more risk if you can truly walk away with a market value below the residual. But be warned lots af closed end leases are anything but. Without seeing the Minin contract I can't comment on theirs. |