No longer a status symbol to own a big giant, gas-guzzling SUV. In fact, it's been tough for car companies to unload SUVs, especially when it comes to leasing programs. All this is certainly a wake-up call for the auto industry.
It is estimated that 20 percent of cars are leased, but consumers who now want to lease a car will see big changes. The nation's #3 auto maker, Chrysler, says Chrysler Financial will discontinue its leasing program to instead focus on retail installment loans. General Motors stopped leasing in Canada, and Ford plans to significantly reduce leasing offers.
What's to blame? The big drop off in larger leased vehicles like SUVs and trucks. Take for example a 2008 Lincoln Navigator still on the showroom floor - its price slashed 20 percent.
"What you have in the automotive industry is a correction, so they have to establish what vehicles are going to be selling, and what vehicles are not going to be selling," says a LeaseTrader.com executive.
LeaseTrader.com reports an increase in the number of drivers that are trading in their leases and downsizing to smaller cars. High prices at the pump are partly to blame. Many consumers are bracing for changes.
Manufacturers are now offering incentives to buy rather than lease, like 0% interest for six years. And the types of vehicles in demand are certain to change. "The vehicles in high demand right now are things like the Toyota Prius or the Toyota Camry," adds LeaseTrader.com.
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