CINCINNATI – Swapalease.com, a car lease marketplace, unveiled its latest report on vehicle lease trends and brand retention for leasing: “2020 Vehicle Lease Trends - What’s Motivating Drivers and Dealers to Modernize the Vehicle Lease Experience.”
When a brand can connect emotionally with owners through the vehicle’s content, capabilities or prestige level, owners are much more likely to come back and purchase that same brand again.
Vehicle leasing has been beneficial to consumers who want more car in a compressed time commitment with a lower monthly payment compared with traditional auto financing. Especially as COVID-19 has changed vehicle ownership and purchase trends in a short amount of time, the report spotlights a series of trends in leasing that impact both consumers and dealers alike:
- How COVID-19 changed the reasons why people are escaping lease contracts
- How people are switching from vehicle financing to vehicle leasing
- The outdated and unnecessary roadblocks some brands still have making it difficult for people to escape or takeover an existing lease
- The dramatic impact these roadblocks have on certain brands, and how this decision reduces brand loyalty from consumers
- How more dealers see value in playing a larger role in the process of lease transfer
The report shines a spotlight on new analysis that proves where lease transfer is a win-win-win scenario for the consumer, dealer and vehicle manufacturer/lender. Particularly from a brand loyalty standpoint, there is great value in lease transfer.
“Customer loyalty is perhaps the most important metric for manufacturers because it incorporates many factors that lead customers to become brand ambassadors,” said Tyson Jominy, Vice President of Data & Analytics at J.D. Power1. “When a brand can connect emotionally with owners through the vehicle’s content, capabilities or prestige level, owners are much more likely to come back and purchase that same brand again.”
The Swapalease.com report illustrates how dealers and brands that allow for a fast, easy and fluid transfer of lease contracts (BMW, Toyota, Lexus) see an annualized new unit increase (new cars sold or leased each year) of 15.6%. This is based on the findings that those same brands see a 91% brand loyalty/retention rate versus just 39% of all other brands (Honda, Hyundai, Nissan).
“When you have a customer that wants or needs out of their lease for any number of reasons, they appreciate a brand’s willingness to help and that plays a significant role in the decision they make when deciding on their next vehicle,” said Scot Hall, Executive Vice President of Swapalease.com. “Over the years we have seen time and again thousands of people who feel the frustration of a brand that places roadblocks on this process, and that frustration single-handedly makes their decision to move to a different brand in their next vehicle.”
The 2020 Vehicle Lease Trends Report is now available. Click here to view the report.
Originally posted on Auto Dealer Today