Swapalease sees Used Car Prices Up, Lease Payments Down
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CINCINNATI, May 27, 2010
Pre-owned vehicle transaction prices rose nearly 7.0 percent when compared to the same period in 2009, per leading automotive market research company CNW Research. Black Book data quoted recently in the Automotive News showed significant increases in the value of vehicles such as the Chevrolet Malibu (35%) and Honda Accord(24%). In addition, certified sales have increased approximately 8 percent compared to a year ago.
Various factors have caused this increase in pre-owned vehicle values, including both the supply and demand of used vehicles. Government programs such as “Cash For Clunkers” effectively reduced the available supply of used vehicles for consumer purchase. Post bankruptcy domestic automakers have dramatically limited production schedules and the automotive industry overall has cutback as a result of market forecasts falling well below peak levels.
This combination of fewer pre-owned units being available coupled with lower new vehicle inventories has forced prices upwards with more consumers competing for a smaller pool of vehicles. In addition, the availability of credit to a wider array of automotive buyers as financial markets recover is increasing competition as well.
"Historically leasing companies have been able to set lower lease payments for on new cars when pre-owned vehicle demand is strong. This demand allows lenders to use higher residual values in their calculation," notes Scot Hall the EVP of Operations at Swapalease.com. Hall continues, "This is due to lessors utilizing higher residual values which decreases the amount of depreciation in the lease calculation. Less depreciation will often offset the higher original vehicle sales price ultimately saving the leasing consumer money every month through lower payments."
For more information about Swapalease.com or how to exit your lease early, call 866-SWAPNOW or visit www.swapalease.com.
Swapalease.com is the world’s largest automotive lease marketplace and the pioneer in facilitating lease transfers online using a patented process. First conceptualized in 1997, Swapalease.com has evolved into the leading automotive consumer online destination servicing all aspects of the automotive leasing lifecycle and provides programs (including new leases and for sale vehicles) for both consumers and dealers in the U.S. and Canada. The company is headquartered in Cincinnati, Ohio. For more information, call 866-SWAP-NOW or visit www.swapalease.com.
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