A second quarter report shows more people assuming mid-size and entry-level luxury vehicle leases
MIAMI - LeaseTrader.com, the nation's most popular online marketplace for car lease transfers, recently announced a shift in customer demand for vehicles that may shed light on the economic recovery. LeaseTrader.com's Q2 customer activity report shows a modest rise in people assuming mid-size and luxury vehicles.
Beginning with the gas crunch in the spring of 2008, LeaseTrader.com customers downsized into a smaller, less expensive vehicle at a nationwide increase of 25-30%. Since the beginning of Q2 (April 2009), this percentage increase has slowed to 10-15%.
"There seems to be more confidence in the American economy drawing more people back to the mid-size and luxury leases," said Sergio Stiberman, CEO and founder of LeaseTrader.com. "Consumers are still exercising their option to escape a car lease by transferring it to someone else, but they're also more willing to shop for a vehicle that is in a similar monthly payment category rather than drastically downsizing their payment."
The LeaseTrader.com trend coincides with the automotive industry which may be seeing a small light at the end of the tunnel for car sales. According to media reports, new car sales in June saw its smallest decline in any month so far this year (28%) suggesting further evidence of a possible bottom in the market. Low inventories, incentive programs, and rising consumer confidence all play into this shifting automotive trend.
LeaseTrader.com is seeing an uptick in lease takeover demand for entry-level luxury vehicles such as the BMW 3 Series and Mercedes C Class, in addition to crossover vehicles like the Buick Enclave and Mazda CX-9.
LeaseTrader.com's Lease Takeover program allows people to adopt the remaining portion of someone else's lease to avoid a down payment at a dealer and lengthy lease terms. Lease shoppers pay a $39 membership for with credit check and $149 to begin the transfer process.
LeaseTrader.com easily and affordably matches car shoppers with individuals looking to transfer their auto lease. Privately held and founded in 1998, LeaseTrader.com is headquartered in Miami.