Operations

28% More Businesses Are Transferring Company Cars

Posted on September 1, 2009

Small companies cutting staff use lease transfer to shed unused company car leases.

MIAMI -- LeaseTrader.com, an online marketplace for car lease transfers, reports an increase of 28% in the last six months for small business customers using the car lease transfer service to shed company car leases left unused due to small business downsizing and staff reductions.

The recession and slow recovery has left millions of Americans unemployed, many from small businesses forced to cut budgets, downsize staff, and slash operating costs to survive. But owners of small outfits that lease company cars for tax purposes are left in a precarious position when car leases are stuck in park while the bank still requires monthly payments. More owners are using car lease transfer as a way to ditch the lease and remove the financial obligation from the books.

"For many smaller companies, survival in today's business climate requires a healthy balance sheet and the ability to escape unnecessary financial burdens without harm to credit," said Sergio Stiberman, CEO and founder of LeaseTrader.com. "Companies with several company leases sitting unused in the parking lot can amount to tens of thousands in unnecessary payments, further deteriorating the balance sheet. Lease transfer offers the ability to shed those unused lease payments without destroying company or personal credit."

The LeaseTrader.com Small Business program allows owners to list a company car lease for just $79. LeaseTrader.com has a waiting list of people looking to take over these leases since it represents a cost-conscious way to shop for a vehicle. When the two parties are ready to make the transfer, a brokerage fee of $149 is collected. The small business owner simply hands over the keys and walks away from the contract with no harm to the credit status.

Summary points

  • Because of the recession and slow rebound, small businesses are left with lots of unused company car leases after staff cutbacks.
  • Since most of these are leased cars, the owner can't sell to someone else or hand the keys back to the bank without destroying credit.
  • To escape the financial pinch they're escaping the contract by finding someone else to take over the remaining portion of the contract.
  • The small business owner then walks away from the contract with no harm done to credit and costing minimal fees.

About LeaseTrader.com

LeaseTrader.com is a top resource on vehicle lease transfers. The company facilitates automobile lease transfers and easily and affordably matches car shoppers with drivers wanting out of their leased vehicle.

 Visit http://www.leasetrader.com/, or call 800-770-0207.

Related Topics: fleet financing, gaining lender approval, lease financing, leasing companies, vehicle leasing, vehicle turnover

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