WESTLAKE VILLAGE, Calif. -- Nameplates encumbered with larger, less fuel-efficient products are increasingly offering attractive lease terms as a means of remaining competitive, according to J.D. Power & Associates.
A recent review by the marketing information firm showed that the two nameplates with the greatest increase in leasing this May –- Land Rover and Hummer –- both offer larger vehicles not perceived as particularly fuel efficient (with the exception of the Land Rover LR2). In year-over-year comparisons, both nameplates had a nearly 20 point increase in lease penetration.
Land Rover is now leasing 65.3 percent of its vehicles, and Hummer leases 55.3 percent of its units. The most popular Land Rover, the Range Rover Sport, had a lease penetration of 69 percent in May, up from 44 percent a year ago. A 24-month lease of the Range Rover Sport includes a $751 monthly payment with $3,555 down, which compare favorably to a monthly payment of $1,045 and $15,280 down for a 60-month loan.
Similarly, a 36-month Hummer H3 lease includes a monthly payment and down payment of $475 and $3,281, respectively, which offer more value (at least in the short term) than the $576 monthly payment and $8,580 down payment on a 60-month loan.