Doctors top Realtors looking to get out of auto leases
Doctors have surpassed real estate agents as the most financially distressed profession — measured by numbers trying to dump costly auto leases for financial reasons.
That’s one of the insights gleaned from Miami-based LeaseTrader.com, which plays matchmaker between those trying to exit car leases and those seeking leases.
Two years ago, real estate professionals topped the list of those trying to get out of expensive car leases for financial reasons as the housing bust crushed their industry.
Of all doctors seeking to exit leases through LeaseTrader, 54 percent cited financial reasons. And many of those listings involved luxury autos such as Maserati, Mercedes S Class and BMW 7-Series.
Today, most people are trying to exit a lease for financial reasons, often tied to a job loss or home foreclosure. But other factors beyond finances could drive one's decision, including moving to a new city changing jobs, wanting to shift to a newer model or a growing family needing a larger car.
LeaseTrader also found that there’s a gender difference among doctors trying to get out from under luxury car leases. Male doctors looking to escape a lease outnumbered female doctors three to one as of September.
Across the board, women aren’t feeling the pain nearly as much as men, the company found. Some say it reflects how this downturn is hitting men harder than women. I also suspect that it reflects women being more prudent in taking on risk and expenses during the good times.
LeaseTrader says doctors are doing the worst today because of the frustration and costs involving health care.
Doctors were followed by lawyers as the profession most often citing financial reasons for dumping a lease. Of lawyers offering leases, 43 percent cited financial reasons.
But LeaseTrader is quick to note that those in real estate aren’t out of the woods yet. Real estate professionals cited financial reasons in 43 percent of this year’s listings coming from that occupation. They were by 32 percent of finance execs citing financial reaons and 17 percent of insurance brokers exiting leases citing financial reasons for doing so.
That’s a far cry from the ravages of 2008’s financial meltdown, when 68 percent of real estate agents cited financial reasons for exiting a lease through LeaseTrader, followed by 63 percent of finance execs; 34 percent of doctors; 26 percent of lawyers; and 22 percent of insurance brokers.
To be included in these categories, a driver had to cite one of the above occupations and have a car valued at $40,000 or more. The firm didn't break down figures geographically.
LeaseTrader regularly shares with me economic insights it picks up through its marketplace. The firm has credibility with me having seen evidence of its trend-spotting acumen. LeaseTrader recently told me of the growing popularity of auto tourism in which a car buyers cut a great deal over the Internet and then travel great distances to pick up their cars.
LeaseTrader says auto tourism is popular with dealers located in travel destinations like Orlando and Phoenix. But I know this trend is playing out in the bucolic countryside as well. Auto dealers in Wayne County, Ohio, are selling cars online to out-of-state buyers who then fly in to pick up their cars. I was quite surprised since tourists drawn to Wayne County, home of the J.M. Smucker Co., are usually focused on horse-and-buggies of the Amish, not picking up their own set of wheels. Or so I thought.
In another trend, LeaseTrader spokesman John Sternal says baby boomers, more so than any other demographic group, are downshifting from luxury to practical cars. The company says boomers are flooding its site with listings for leases on high-end vehicles such as the BMW 7-Series and Mercedes S Class. They’re opting for less expensive cars like the Hyundai Genesis and Volkswagen CC.
Read more: Doctors top Realtors looking to get out of auto leases | San Francisco Business Times
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