Tuesday, June 22, 2010

More Good News for Consumer Leasing

Lower payments, shorter trade cycles, improved credit markets and increased sales pressure from the OEM's are all contributing to push vehicle leasing back into the forefront of consumer automotive finance.

Our friend Jennifer Reed of Cherokee Publishing just posted an article "Leasing Opens Back Up as Automakers Seek Higher Sales" that details everything going on in the current auto market.

Just as American car buyers flocked back to "gas guzzlers" when gas prices dropped below $4 per gallon, leasing has always been poised to rebound.

What the article does not touch upon however, is how will the banks respond as OEM's captive finance companies grab more market share through subvented leases?

They would be smart to look at pre-owned leasing. The current wholesale markets are strong and there is virtually no competition - especially from the deep-pocketed OEM's.

Additional leasing resources can be found online at the National Vehicle Leasing Association.

Tuesday, June 1, 2010

Negotiate At Dealership Or Go To The Dentist?

Our friends at Auto Remarketing are reporting about a recent Microsoft survey focused on the buying habits, expectations and preferences of Millenials - the newest generational demographic made up of buyers 18-29 years of age.

Respondents were asked a series of questions including their thoughts about making a choice between negotiating at a dealership or going to the dentist.

Which do you think they overwhelmingly chose?

Tuesday, May 25, 2010

Auto Dealer Monthly Profiles Car Leasing Done Right

Auto Dealer Monthly's latest issue has a nice report how Boch Honda in Attleboro, Mass. is finding vehicle leasing is coming back in a big way.

And although I disagree that residuals have to be inordinately high or subvented by the OEM's to have consumer appeal, Boch is still driving shorter trade cycles, increasing customer satisfaction and realizing bigger back end profits through consumer vehicle leasing.

They and other dealers like them should be a part of the NVLA. Does anyone know Ernie Boch or anyone else at their family of dealerships?

Monday, May 24, 2010

Used Car Leasing: Yes, You Can Do It - And It's On The Rise

Unbeknown to many consumers is that you can actually lease a used car. And when you think about it, the whole idea makes complete sense.

A 1 year old used car has already encountered the dramatic first year of depreciation. In years, two through four, a car depreciates far less and as a result, you get a great 'new' car for about 20-30% of the money.

According to used leasing expert David Ruggles of the Autos And Economics Blog, used car leasing is the way of the future for many consumers. "In a tight economy, car buyers are looking for new ways to drive more car for their money. A 2010 Infiniti G37 Coupe 2dr Sport can be leased at 48 months for about $575 per month. If you leased a 2009 version of the G37, for 36 months, the lease payment would run about $436 per month - a savings of almost 25%."

And as we move toward the second half of 2010, Art Spinella of CNW Research reports there were almost 80,000 used vehicles leased last month.

Here is more from our friends at Cherokee Publishing: CNW Research Reports Positive April Gains for Used Car Leases

Wednesday, April 14, 2010

Good News Continues for Vehicle Lessors

We're getting stories almost every day that used vehicle prices are strengthening and this is certainly great news for vehicle lessors.

Today, we get two stories from our friends at Cherokee Publishing / Auto Remarketing Today:

KBB Sees Strong Used Vehicle Values, Demand Continuing

Ford Reports Resale Values Up 23 Percent

We all know strong resale values mean less residual risk to lessors. With the SAAR improving and strong used vehicle values, how long will it take for regional and national banks to get back into vehicle leasing?

Monday, March 22, 2010

Revisiting How To Use Tmv And What Exactly Is It?

Revisiting How To Use TMV And What Exactly Is It?

A year ago we published a highly regarded article on how to use Kelly Blue Book's TMV in your next new car purchase. Here we, take a look back a year later and update the article with some amazing developments that have occurred in the last twelve months.

Friday, March 5, 2010

Expert Opinions on Toyota

Dr. Mike Smitka is one of the world-renowned experts on the Japanese automotive business. I met him through David Ruggles who shares the rights to their AutosAndEconomics blog on Google Blogger.

Check out Smitka's latest take on Toyta and let me know what you think!