Taking Another Look at Diesel
According to the popular car-leasing website LeaseTrader.com, consumers are increasingly seeking to take over leases of diesel cars. With gas prices approaching $4 a gallon in many states, drivers are inquiring about fuel-efficient options that go beyond hybrid vehicles and the solution nobody wants: taking public transportation. More so than in 2008 (the last time we saw a rapid increase in fuel price), drivers seem ready to get behind the wheel of diesel vehicles, which in most cases are more costly to buy or lease, but which also offer more miles per gallon. LeaseTrader.com has noted search demand and lease takeovers are up for several diesel models, compared with activity from 2008.
The Mercedes-Benz E350 BlueTEC has the highest demand among diesel vehicles on LeaseTrader.com, with search demand up 6.4 percent since January. Search demand has also increased for diesel vehicle models from BMW, Audi and Volkswagen since January. Among domestic vehicles, Chevy and Ford diesel truck searches have increased in the same time period. The trend indicates an increase in consumer sophistication regarding modern diesels.
“The diesel cars of today are clearly not your father’s diesel,” says Sergio Stiberman, CEO and founder of LeaseTrader.com. “More people today are searching for diesels because of the improved mileage they can get, and they’re offered in vehicle styles they know and love. What’s more, diesel residuals are very strong right now, which means deals are getting better.”
The key benefit of today’s diesels is better fuel economy, though that is somewhat offset by the fact that, in many areas of the U.S., diesel fuel is more expensive than premium gasoline. And because diesels are more difficult to manufacture, diesel vehicles are generally more expensive than equivalent conventional gasoline-powered vehicles. But in the secondary lease market, these factors are tempered somewhat, making diesels at least look more attractive. Of course, the short-term nature of the lease-acquisition process allows consumers to “sample” a diesel car without buying it or even making a long-term commitment to lease it.
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