Company sees today's retail incentives fueling inventory spike for secondary marketplace.
MIAMI -- LeaseTrader.com, an online marketplace for car lease transfers, recently issued an improved outlook for car leasing and forecasts continued growth in the secondary marketplace through increased transfer activity.
Attractive and competitive deals and incentives on leased vehicles today will ultimately lead to increased volume of listings on LeaseTrader.com in the coming months.
LeaseTrader.com's inventory is expected to grow at least 35% over the next 18 months due to an influx of leasing deals offered today at retail. The company welcomes additional inventory to satisfy a growing "waiting list" of credit-worthy individuals interested in taking over someone else's auto lease on the secondary market.
As many as 4.1% of retail leases typically come into the secondary market as early as six months into the contract, which means this new inventory will reach LeaseTrader.com starting in September. It is estimated that these lease deals will expand over time, showing a gradual increase into the second quarter of 2011.
LeaseTrader.com's total inventory levels are expected to increase more than 35% by April 2011, when many of today's lease deals are placed on the secondary market for lease transfer.
"Approximately half of all leasing drivers would like to exit their contract before it ends due to a variety of reasons but they are weary of paying expensive termination fees," said Sergio Stiberman, CEO and founder of LeaseTrader.com. "Similar to trends we saw following the 2001 economic downturn, the secondary leasing marketplace will begin to experience an expansion of inventory levels, ultimately benefiting those shopping for shorter term lease deals."
LeaseTrader.com believes future inventory growth will come from domestic and import sedans and crossovers, which are available today through attractive lease offers at the retail level. Some analysts believe the market for car leasing will return to about 10.5 million by 2012, up from roughly 9.1 million today.
LeaseTrader.com easily and affordably matches car shoppers with individuals looking to escape their auto lease. Privately held and founded in 1998, LeaseTrader.com is headquartered in Miami. For more information visit www.leaseTrader.com, on Twitter @Lease_Trader, or call 800-770-0207