FINANCIAL STRAINS CAUSE CAR SHOPPERS TO BECOME NEAR-SIGHTED
Unstable Economy Keeps Consumers Away From Long-Term Financial Commitments
MIAMI (October 16, 2008) – The rapidly deteriorating stock market and slowing economy, combined with high gas prices and a weakening job market, are all major reasons why new car sales continue to plummet. The largest factor, however, may be the consumer’s weariness towards signing up for long-term financing packages that span 60 – 96 months.
Executives at LeaseTrader.com, a nationwide online marketplace for secondary auto leases, believe consumers today are plagued with “Automotive Near-Sightedness.” People want to shop for a new vehicle, but they aren’t in a financial position to commit to a lengthy lease or finance. Some car manufacturers offer 72- and 96-month financing, which puts the consumer in a negative equity position that’s hard to escape. Consumers aren’t interested in what amounts to a second mortgage.
In 2007, the majority LeaseTrader.com customers searched for vehicle leases with an average of 22 months remaining. In 2008 that number has shrunk to 17 months. What’s more, a recent online Leasetrader.com poll taken found that 76 percent of car shoppers want leases for less than 36 months.
“The majority of Americans today just don’t know what is going to happen to their paycheck 12 months from now,” said Sharon McCoy, a California-based independent automotive expert. “Negotiating a monthly payment spread out over a very long time just doesn’t make sense when you don’t know what tomorrow will bring for your family’s financial picture.”
More people are instead opting for short-term vehicle solutions. Taking advantage of the secondary lease marketplace, many consumers are now choosing to take over someone’s existing vehicle lease because there is no money down and they’re simply taking over the remainder of the contract – much shorter than some of today’s financing plans that run 96 months.
It’s free to browse LeaseTrader.com for a vehicle. Once shoppers are ready to make contact with sellers they pay just $39 for a 60-day membership and credit check, followed by $149 to take over a lease.
About LeaseTrader.com
LeaseTrader.com easily and affordably matches car shoppers with individuals looking to escape their auto lease. Privately held and founded in 1998, LeaseTrader.com is headquartered in Miami. For more information visit www.leasetrader.com, or call 800-770-0207.
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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