FOX Business sat down with LeaseTrader.com to discuss the car leasing situation. FOX: I am told that the car leasing industry is dead. Is that an accurate or overblown statement. I ask the question because Chrysler has abandoned leases on new vehicles. A couple of other car companies are in the same position. So, is the lease dead? We sit down with LeaseTrader.com to disuss.
LeaseTrader.com: The lease is not dead for the U.S. consumer. It is not dying. If you think about it, what leasing does to the automotive industry, is that it speeds up the whole shopping experience.
FOX: Yes but wait a minute. If Chrysler is cutting back on their leasing business, that can't be good for leasing.
LeaseTrader.com: Well Chrysler is having issues with the value or devaluation of their product.
FOX: But they can't afford to finance these new leases.
LeaseTrader.com: The number one issue is that they can't project what the value is going to be on their product. Other manufacturers like Mercedes, Toyota and BMW, the value of their vehicles goes up in some cases. And they will have no problem leasing vehicles. The consumer on the other hand, that's leasing the car, is speeding up the shopping cycle. If you cut off leasing, what you're basically then doing is putting them in 8-year finance terms and taking them out of the showroom for the next eight years.
FOX: So then is it fair to say that the number of lease deals on new cars here in the U.S. is down?
LeaseTrader.com: Well, car sales overall are down.
FOX: But are lease deals down?
LeaseTrader.com: They've been stable for the last few years. Maybe they're down a little bit this year. But the demand from the consumer is up because it allows them to get more car for less money.
This story posted by LeaseTrader.com, the automotive service company that lets people transfer out of their Car Leases early. If you're looking to swap a lease or transfer out of your car lease, please visit www.leasetrader.com