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Posts Tagged ‘car leasing’

Auto Loans Top $1 Trillion, But Delinquencies on the Rise

Rising lease rates pose another potential problem.

by on Sep.07, 2016

August marked the second consecutive quarter where auto loans topped the $1 trillion mark.

If you’re making monthly payments on a new car, truck or crossover, you’re not alone. The long, record recovery of the U.S. automotive market has resulted in an all-time high in automotive debt – and is also leading to a rise in delinquency rates.

Between April 1 and June 30, Americans were paying off $1.027 trillion in auto loans, according to Experian Automotive, with a growing share of that due on new vehicle leases. At the same time, the number of buyers who have fallen 30 to 60 days behind on payments rose during the second quarter, Experian reported.

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The rise in delinquencies, the increasing dependence upon leasing and the fact that subprime and deep-subprime loans are rising has begun to worry many observers. Nonetheless, “The sky is not falling,” said Melinda Zabritski, the financial service firm’s senior director of automotive finance.


Drone Delivery? Car Shoppers Look to the Future

Survey finds most buyers won’t want to share cars.

by on Mar.25, 2015

New car buyers are looking for more flexibility in the buying process.

Why bother to drive to the showroom when you can have your next car delivered by drone. At least, that’s what some shoppers had in mind when asked how they’d like to buy a car in the future.

The survey found that a sizable number of shoppers would prefer never to have to step foot in a showroom. But it also suggests that Americans still would prefer to own vehicles rather than sharing them as a way to hold down costs.

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“The automotive industry continues to evolve before our eyes, especially when it comes to the types of cars manufacturers are producing,” said Scot Hall, executive vice president of, which commissioned the survey of 2,500 drivers and shoppers. But the industry also needs to rethink the way it sells and finances vehicles, Hall added. (more…)

Leasing Regains its Appeal

With increased availability, over one in four American car buyers opt to lease.

by on Jun.28, 2013

Chevy has turned to super-low lease rates to help spur lagging Volt sales.

Looking for a quick way to cut the cost of buying a new car? You’re not alone, and that’s why a growing number of American motorists are opting to lease, rather than buy.

If that sounds a note of déjà vu, no surprise.  Leasing was big news for U.S. auto buyers in the years leading up to the economic crash.  For luxury brands, in particular, leasing accounted for as much as 80% of their sales. Then the bottom fell out and some makers, notably General Motors, pulled out of leasing entirely.

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As credit has loosened, auto buyers and automakers alike have rediscovered leasing’s advantages and the numbers are once again climbing – but so is the number of lease customers who find themselves wanting to get out of their vehicles sooner than expected, industry observers note.


McBlog: Fiat Delivers a slap in the face.

Where’s the lease?

by on May.29, 2012

Supermodel Catinel Menghia poses with a Fiat 500 Abarth. She can slap us any day, but why is Fiat punching out its customers? asks McBlog author Denise McCluggage.

Doug, a friend and regular at Santa Fe’s Tuesday Car Table, test drove a Fiat 500 Cabriolet that I had for a week and loved it. But considering our city’s 7000-feet altitude decided a turbo was indicated. He’d wait for the Abarth. He told Fred Vang, another Car Table regular, to order one for him. That’s what Fred does, connects people and cars.

As a Personal Car Consultant he helps clients decide what new car best suits their needs and does all the wheeling-dealing and sees that they get the best deal delivered ding-free and clean to their door.

Fred is fond of telling clients: “You seem to know what you want but do me a favor: dance with a couple more before you get married.”

In this case since Doug had driven a number of alternatives, the dancing was Fred running numbers, checking with many sources for prices on three cars, all with Doug’s options. The three: Mini Cooper S, VW Golf GTI and the Fiat Abarth.

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Fred compiled the numbers on a grid and presented them to Doug with a detailed explanation. Doug said it was like “a slap in the face” like in the Fiat Abarth ad featuring the leggy model Catrinel Menghia, dressed in red and black. And that’s why Doug arrived at our monthly Car Table driving a new VW Golf GTI.


Leasing Making a Big Comeback

May soon account for 43% of luxury market again.

by on Mar.04, 2011

Good news for Land Rover as it launches - and leases - the new Range Rover Evoque.

In the “bubble years,” prior to the economic meltdown, leasing had become the option of choice for millions of American motorists, accounting for a majority of the business for some luxury brands.  After all but vanishing during the downturn, leasing is now poised to make a major comeback, suggests the Automotive Leasing Guide.

Also known as ALG, and a principle benchmark for residual values and depreciation data, the publication predicts a significant resurgence in the automobile leasing market that will continue right on through 2015.

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The luxury segment will lead the way with lease penetration rates rising to nearly 43% by 2012, while lease penetration in the mainstream market will increase to 17.5% over the next two years, according to the new estimates prepared by ALG.

Numerous brands are expected to capitalize on this leasing resurgence, based on the ALG 2011 March/April edition and current high residual values forecasts, which allows them to offer highly competitive monthly lease payments.