CINCINNATI—A new report indicates consumers are seeking alternative leasing solutions to those offered through dealerships as carmakers cut back on leasing incentives.
As CUToday.info has extensively reported, automakers are pulling back on leasing, removing zero-percent offers and cutting back sharply on other leasing incentives. The reason for the moves, analysts have stated, is the losses manufacturers have begun to feel on lease deals as a flood of late-model, well-maintained low-mileage vehicles have been coming off-lease in recent years. That has negatively affected residual values.
Now Swapalease.com reports that activity on its website is markedly higher, year over year, on most auto brands. Swapalease.com matches individuals who want to get out of their lease with people who are looking for short-term lease agreements.
“Many brands saw a large jump in traffic during the last three months as consumers continued to seek alternate shopping channels for lease deals as incentives continued to dissipate on lease offerings in the showroom,” said Scot Hall, executive vice president of Swapalease.com.
How Payments Compare
The average monthly lease payment according to vehicles in the Swapalease.com marketplace during the third quarter was $510.22, up from $487.51 during the second quarter. Also, months remaining grew from 26.3 to 28.1, signaling that drivers continue to look to escape their leases earlier in the contract.
“The lease trends we saw during the third quarter were in line with what we expected coming out of the second quarter, particularly as it relates to the increase in search demands on the Swapalease.com marketplace,” said Hall. “Going forward we believe our marketplace will continue to grow, especially as incentives at the dealership continue to fall.”