Q2 Lease Trends Report Shows More Drivers Opting for Longer Lease Terms
Brands with unfavorable lease policies continue to see lower brand loyalty.
Brands with unfavorable lease policies continue to see lower brand loyalty.
CINCINNATI, Ohio – Swapalease.com, a car lease marketplace, announced its second-quarter Auto Lease Trends Report, showing vehicle lease trends during the second quarter on brand-specific search traffic, lease mileage report, lease listing incentive data and the appetite for domestic versus foreign lease vehicles.
Swapalease.com studies lease market trends and consumer insights each quarter. In order to gain these insights the company studies a variety of lease market data, and takes the pulse of consumer appetites for leasing by presenting surveys to more than 2,500 drivers across the U.S. The purpose of the report is to provide a deeper understanding to the industry on where U.S. auto lease activity is in the present market, and where it may be forecast to go in coming quarters.
Among the key trends Swapalease.com identified in its second-quarter lease data:
Tesla searches are up 64% from the first quarter, among the largest brands with this percentage growth. Tesla as a brand now represents 7% of total search traffic on the Swapalease.commarketplace, second highest behind BMW (18%).
People are now seeking leases with longer-term contracts. Forty-three percent of drivers had 24-month lease contracts in the second quarter, down from 51% a year ago. However, 41% of drivers had three-year lease contracts a year ago compared with 47% today, representing an increase for longer-term leases.
Nearly half of lease drivers (47%) say they would either switch over to a different brand in their next vehicle, or say they aren’t sure if they want to stay with the same brand when it comes time to shop next.
Swapalease.com continues to see a higher success rate of transfer for brands with favorable lease policies, such as Toyota, BMW and GM family vehicles. The company continues to see a lower rate of transfer, as well as lower rate of brand loyalty, on vehicles with unfavorable lease policies, such as Honda, Acura, Nissan and Infiniti.
“We continue to be in a period where identification of the right vehicle is paramount due to inventory challenges,” said Scot Hall, Executive Vice President of Swapalease.com. “A large percentage of these shoppers continue to seek dealer-alternate channels for their next vehicle, and companies with consumer-friendly lease policies are more successful in helping these shoppers complete their transaction on time.”
For more information or to see the full report, click here.
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