In the automobile industry Mercedes-Benz, BMW and Audi each epitomizes German innovation, superior quality and a premium driving experience. These brands consistently weigh in with three bestselling model series in the United States. However, surprising discoveries about leasing have recently been made by Swapalease.com, the market’s only full-service marketplace for in-process vehicle leases.

The Mercedes-Benz C-class series remains a leader among the brands, showing record gains in the past two years, while adapting to today’s consumers with sleeker body styling and more efficient engines. In the most recent 500,000 web searches, Swapalease.com found that 39% of these were Mercedes models.

Motor Trend calls the BMW 3-series “the ultimate best-selling driving machine,” and with good reason: the 3-series accounted for nearly 40% of total BMW sales in 2005, and shows no sign of slowing in 2012. Swapalease.com reports that BMW holds a daunting 47% of recent user searches.

Worldwide, the Audi A4 more than doubles the sales of its competitor models, while being named a 2011 Top Safety Pick by the Insurance Institute for Highway Safety. These strong showings don’t translate well to lease numbers, however. Due to various lease-transfer restrictions, the Audi brand was only able to muster a mere 8% of available leases on Swapalease.com

Interestingly, the demand for and availability of third-party assumption of leases for Mercedes-Benz and BMW vehicles are closely matched. Audi, on the other hand, seems to have sufficient demand, but the supply is weakened by lease limitations. Scot Hall, EVP of Swapalease.com may attribute it to liability issues, “Audi is the only German luxury brand that requires third-party liability on lease transfers,” which basically means “anyone who transfer a lease to another party is still potentially responsible for the monthly payments.”

One thing is clear; if Audi wishes to keep pace with its current record-setting sales numbers and pull ahead of its competitors, changing its lease transfer policies may be a good place to start.

Headquartered in Cincinnati, Ohio, Swapalease.com is the world’s largest automotive lease marketplace and the pioneer in facilitating lease transfers online. First conceptualized in 1997, Swapalease has evolved into a leading automotive consumer online destination servicing all aspects of the automotive leasing lifecycle including education, research, pricing, acquisition and lease transfer. For more information, please call 866-SWAPNOW (866-792-7669) or visit www.swapalease.com.

Summer has come to its inevitable end, and for many families, there’s an additional dilemma on top of school supplies, meet-the-teacher, choosing classes and making the football team: transportation.  From New York City to Los Angeles and in many towns and cities in between, massive school system budget cuts mean longer bus rides for students – and in cases like the San Francisco public schools, no bus at all for high school kids.

Add the lack of busing to ramped-up fall schedules, and the question becomes: who’s going to drive the kids to their schools, sports and activities? If one of those kids is a high school student with a driver’s license, the answer may be easier than parents think: a short-term lease vehicle moves the hassle of chauffeuring off their plate and onto his while keeping budget and safety in mind.

A short-term lease is easy to obtain and the answer to many parents’ prayers. A new (to the family) car will ease the demands on already-busy parents. For example, SwapALease’s online lease trading service (www.swapalease.com) is only full-service online marketplace of in-process vehicle leases, matching individuals who are want to get out of their lease, with people who are looking for short-term leases with low payments and no money down.  Taking over someone else’s lease will tide families over until it’s time to figure out college transportation without obligating their cash long-term – an easy way to find a low-cost, convenient, safe vehicle for young drivers.

Another option is the rapidly growing ZipCar (www.zipcar.com), which has sprung up in urban areas and university towns across the country.  Based on the core principle of “car sharing,” and with the catchy tagline of “wheels when you want them,” ZipCar rents fully-insured, safety-checked, clean cars by the hour or by the day.  Just join the website (and become a Zipster, as they call their users), find a car near you, and reserve it via phone or online. Then pick it up, and it belongs to your family for the length of your contract. Hourly and daily rates and fees vary from city to city, with a $25 application fee and an average $50 annual fee.  Gas, insurance and taxes are included at no extra cost.

School, soccer, cheerleading, youth group, hanging out with friends, orthodontist appointments, and even grocery shopping – parents can hand it all over to the kids with a short-term lease while finding a little spare time for themselves.

If there’s one thing automakers can count on, it’s that a subcompact car built on US soil is a surefire money pit. Until now. General Motors is setting the industry on its ear with its soon-to-debut Chevrolet Sonic, which is being built in a Detroit suburb known as Orion Township. On track to compete with the Mexican-built Ford Fiesta and other extra-small vehicles, the Sonic just might revolutionize the American car manufacturing industry.

What led to this seismic shift in focus? Primarily, increased public demand for smaller, more fuel-efficient cars and a renewed spirit of cooperation with the United Auto Workers union. The smallest, most gas-efficient conventionally powered car in the GM fleet – earning more than 40 highway miles to the gallon – the Sonic’s pricing will start at about $14,000, helping consumers save money at the pump and the bank.

And how is GM doing this? By making a wide range of changes in its traditional thinking, from revamping the plant to about half its original space and bringing outside vendors onto the manufacturing property, to employing cost-cutting, energy-efficient processes and paying union workers about half the UAW’s typical wage. Through these and other efforts the Sonic may be the first American-built subcompact to turn a healthy profit. For comparison’s sake, the Fiesta’s base MSRP is $13,320; the Hyundai Accent GL, the most inexpensive new car on the market, starts at $9,985; and the highest-priced subcompact, the all-wheel drive Nissan Juke SL, goes for $24,550.

Most of all, what does this mean for leasing? Put simply, more affordable contracts! Historically, manufacturers have pushed larger, more profitable vehicles by subsidizing their leases while de-emphasizing the smaller, less expensive models. But as gas prices and ecological awareness continue to rise, so does the public’s demand for smaller, more fuel-efficient, “greener” cars; that means small cars will increase in value and leasing terms will become more attractive.

“A renewed focus on small vehicles is great news for leasing customers,” said Swapalease.com’s Scot Hall. “High MPG vehicles coupled with low lease payments add up to significant consumer savings, and at the same time, those leases are a great way to lure new car shoppers back to the showroom more quickly than standard long-term financing.”

The past couple of weeks have seen a much-needed drop in gas prices – from the $4 a gallon range to $3.80 or less in most parts of the United States. But experts agree that prices at the pump will again rise as the summer travel season swings into gear, and even if they don’t, $3.80 is hardly a bargain. But don’t panic; there are plenty of ways to save your cash while also conserving gas usage, and Swapalease has swept the web to find the very best. Easier on the wallet AND easier on the environment – now that’s a bargain.

·         Relax behind the wheel.  Did you know aggressive driving like speeding, tailgating and then slamming on the brakes, and constant stopping and starting is not only dangerous, but also wastes gas? According to www.fueleconomy.gov, the official US government source for fuel economy information, your inner road warrior may be lowering your gas mileage by as much as 33 percent. And every 5 mph you get above 60 is costing you the equivalent of an additional 24 cents a gallon.

·         Use cruise control.  In general, driving at a consistent rate of speed uses less gas. Cruise control is the most effective way to achieve this.

·         Keep your car in tip-top shape.  A vehicle that’s running at a less-than-optimum performance level is costing you money. Even taking care of a minor problem like getting a long-overdue tune-up can save you up to 16 cents on the gallon. Fix a major problem and you can improve your fuel efficiency by a whopping 40 percent.

·         Use the proper motor oil for your vehicle. Think oil is oil and the guys at the lube shop are just trying to upsell you? Think again. Using a motor oil other than the one recommended by your car manufacturer will cost you money in the long run.

·         Combine your trips. This sounds like a no-brainer, but we all tend to make several trips a week to the grocery store, the dry cleaner, the bank and so forth. Several short trips each made from a cold start can cost double what one longer trip would. Plan ahead and do all your errands in a single trip to make the most of your mileage.

·         Carpooling is an obvious fuel-saver. But in our suburb-based society it’s often not a viable option. Consider negotiating new work hours (avoiding driving in rush hour) and the opportunity to telecommute occasionally.

·         Watch your weight. If your car is loaded down with extra stuff, it has to burn more fuel to move. Instead of leaving those heavy tools you hauled to your brother’s house in the trunk, put them away when you get home. And when you do haul things, use the trunk instead of a roof rack, which creates drag.

And finally, your phone may be your best friend when it comes to improving your fuel efficiency. iPhone and Droid both offer interesting apps to help you do everything from planning your combined trips to finding the cheapest gas in your neighborhood.  Here are a few of our favorites:

·         Carticipate - Available now on the iPhone and Facebook, Carticipate is an experiment in social transportation, the first and only rideshare application on a location aware mobile platform. Coordinate driving plans by indicating where you are going, when, and post your ride.  The app will match you up to local carticipants going your way.

·         AAA Triptik – provides all the local information you expect from the Automobile Association of America, as well as gas station location and price info.

·         Gas Buddy – available on iPhone, Android and Windows, this app pulls together a community of users to update gas prices in real time, incenting input by offering points toward prizes. And it’s free!

·         Accufuel - AccuFuel™ Fuel Efficiency Tracker is a powerful tool that makes monitoring your vehicle's fuel efficiency simple and fun. With AccuFuel, you'll instantly see how your driving habits affect your fuel efficiency.

Gas for $3.89 a gallon: a bargain worthy of turning the car around and filling up. With gas prices remaining well above $4 for the foreseeable future, keeping the car full is an expense similar to housing for many.

Sticker shock at the pump is causing auto owners to look closely at their vehicle and potential purchases. Many are considering more gas-efficient models and hybrids, which are rapidly gaining popularity. Autodata found that February sales of Toyota’s Prius rose 69.9% over February 2010 sales, with Honda’s Civic Hybrid seeing a 58.3% increase. And General Motors sells every Volt long-range electric vehicle it can produce.

As the popularity of these cars increases, so do prices. At the same time, prices at the pump aren’t budging. How can you save money?

Consider leasing. Leasing, whether it’s a fuel-efficient model, a hybrid or even an SUV, keeps your car payment manageable and frees up cash. While leasing’s popularity declined steeply during the economic downturn, it’s now on a major upswing, with nearly a quarter of car shoppers choosing to lease. The main advantage of leasing is that you are only paying for the pre-set amount of time you will be using the vehicle, which keeps monthly payments lower and gets the consumer more car for the buck.

"Another excellent option for many consumers is lease assumption.  Through sites like www.swapalease.com, people can take over a lease from individuals looking to get out of their lease.  Swapalease began seeing a surge in interest in fuel-efficient vehicles among our users as soon as gas began its climb towards $4 per gallon," says Richard Joseph, president of Swapalease.com

As people continue to feel the crunch of the economy and increased prices of gas, food and other necessities, automakers are making leasing options more attractive. New developments include shorter lease contracts (as low as 24 months); a wider variety of compact cars available for leasing; and lower interest rates.

While there are many things to consider when choosing to lease, check www.swapalease.com, the first and only full-service online marketplace of in-process vehicle leases. With the goal of matching individuals who are currently leasing vehicles they wish to get out of, with individuals who are looking for short-term leases with attractive payments and no money down, it’s the perfect way to find the perfect vehicle for you.

Gas for $3.89 a gallon: a bargain worthy of turning the car around and filling up. With gas prices remaining well above $4 for the foreseeable future, keeping the car full is an expense similar to housing for many.

Sticker shock at the pump is causing auto owners to look closely at their vehicle and potential purchases. Many are considering more gas-efficient models and hybrids, which are rapidly gaining popularity. Autodata found that February sales of Toyota’s Prius rose 69.9% over February 2010 sales, with Honda’s Civic Hybrid seeing a 58.3% increase. And General Motors sells every Volt long-range electric vehicle it can produce.

As the popularity of these cars increases, so do prices. At the same time, prices at the pump aren’t budging. How can you save money?

Consider leasing. Leasing, whether it’s a fuel-efficient model, a hybrid or even an SUV, keeps your car payment manageable and frees up cash. While leasing’s popularity declined steeply during the economic downturn, it’s now on a major upswing, with nearly a quarter of car shoppers choosing to lease. The main advantage of leasing is that you are only paying for the pre-set amount of time you will be using the vehicle, which keeps monthly payments lower and gets the consumer more car for the buck.

"Another excellent option for many consumers is lease assumption.  Through sites like www.swapalease.com, people can take over a lease from individuals looking to get out of their lease.  Swapalease began seeing a surge in interest in fuel-efficient vehicles among our users as soon as gas began its climb towards $4 per gallon," says Richard Joseph, president of Swapalease.com

As people continue to feel the crunch of the economy and increased prices of gas, food and other necessities, automakers are making leasing options more attractive. New developments include shorter lease contracts (as low as 24 months); a wider variety of compact cars available for leasing; and lower interest rates.

While there are many things to consider when choosing to lease, check www.swapalease.com, the first and only full-service online marketplace of in-process vehicle leases. With the goal of matching individuals who are currently leasing vehicles they wish to get out of, with individuals who are looking for short-term leases with attractive payments and no money down, it’s the perfect way to find the perfect vehicle for you.

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.

About 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.

By Liz Opsitnik
Monday, May 10 2010 14:57

A year ago, people who were laid-off or had to take a pay cut were finding ways to get out of their leases or get into a more affordable vehicle. These lessees had trouble making the payments and with the strict lease contract rules, they turned to lease transfer companies to help them get out of their leases and find someone to take over the payments.

Swapalease.com says that just one year later, it has witnessed a shift in consumer behavior, especially in recent weeks. The site's users are more commonly saying that their motivation for transferring a lease is based on desire rather than being forced to do so from a monetary perspective.

"Last year at this time we saw clients needing to get out of their leases for financial relief," says Scot Hall, executive vice president of operations at Swapalease.com. "Now more clients want to get out of their lease to pursue new vehicle opportunities as opposed to having to do so."

The site's clients are asked to choose from the following three reasons as to why they want to get out of their lease:

1. Lifestyle changes (ex. baby on the way and the convertible has to go)
2. Financially troubled (ex. job loss, pay cut)
3. Want/desire (ex. time for a new vehicle, I want to try something different)

Swapalease.com representatives, who Hall says handle thousands of calls a day in and out of the company's headquarters, compiled answers from these informal exit surveys. 

"At times in 2009 we were seeing 'financially troubled' stated as the reason for exiting a lease as high as 50 percent, whereas over our history, we more commonly saw results in the 20 percent to 30 percent range," Hall says. "Both late first quarter and April data indicate that the percentage of our clients stating financial trouble as their motivation is trending downward and has dropped into the high 30 percent range. Additionally, we have seen the opposite trend for want and/or desire based motivations being stated by clients climbing above 25 percent."

Bill Perilli, who works in corporate finance in Washington, D.C., is currently trying to get out of his lease and then potentially into another one using Swapalease.com. Although Perilli and his wife need to get out of their BMW 135i convertible because they have a baby on the way, they are looking to get into a similarly-priced Mercedes-Benz ML 350 SUV.

"Typically, on Swapaplease.com you can benefit from someone else's down payment," Perilli says.

Perilli also took over the payments from the previous owner on his current BMW 135i convertible without having to put anything down. By using Swapalease.com to get out of and into leases instead of leasing through a dealership, Perilli said he is "absolutely" saving money.

When asked about the want versus need trend that Swapalease.com is seeing recently, Perilli says he thought there would be more people who need to get out of their luxury cars through the site.

"I actually expected to see a lot more high-end cars than are currently listed on Swapalease, so I expected to see a little increase," he says. "But however, I think some of the people who leased expensive cars were savvy enough to not put themselves into a situation that they couldn't handle financially, even with the economic downturn."

Dr. Jill Perel, a psychotherapist from Delray Beach, Fla., recently got out of her BMW 650i convertible lease through Swapalease.com.

"I did not like the car from the day I brought it home," Perel says. "It was too big on the outside, too small on the inside and it had bad visibility for me. I live in South Florida and I never used the convertible. It was too sunny and I couldn't see with it down."

"Seriously from the day I brought it home I was like 'ugh', maybe I'll get used to it. A few months went by and I was like, 'you know what? This is a really expensive car and I just don't appreciate it.' I had it for a year and a half with a year and a half left on the lease. And I would have done it a whole lot sooner if I had known about Swapalease. I just didn't know about it."

Perel says she posted her BMW on the site early in the morning and later that day, there was a huge response of people who wanted to take over her lease.

"I put it on the market at 9:00 in the morning, and there was someone in my driveway waiting to test drive it at 6:00 that night," she says. "It was an amazing experience."

"I had a low lease payment for what the car was," she says. "Essentially, it was below $1,000 for that car, which blew a lot of people away. They didn't have to put any money down and they could just take it over. I had a waiting list of people for that car."

Perel says she didn't put a down payment on the BMW when she leased it and that she got a good deal at the time. Perel chose a new Lexus 250h to replace her BMW convertible, which she leased from a Lexus dealership instead of going through a lease transfer site to take over a lease on one.

"I got a hybrid and got a brand new model that I don't even think Swapalease would begin to have, so that was my reason (for going through a dealership)," Perel says. "I love it."

Perel says that in South Florida, there are a lot of high-end cars on the road.

"That's where Swapalease does well," she says. "Because with the high-end cars, the finance department takes care of everything and it's going to draw a certain customer."

Hall says that currently on Swapalease.com, 10 percent of their listings are monthly lease payments $300 or less, 33 percent fall between $301 and $500 a month and 57 percent are $501 or higher.

Although Swapalease.com's recent data shows that there are fewer people needing to get out of their leases due to economic hardship, there are still a large percentage of high lease payments advertised on the site.

So if you're looking for one of the $199 a month lease deals, chances are you'll have to go to the dealership. These low lease specials usually require several thousand dollars down and are subsidized by the manufacturer's lender.

But if you're in the market for a luxury vehicle, for example, and don't want to put thousands of dollars down at the start of the lease, a site like Swapalease.com might be helpful. You can take over someone else's luxury vehicle lease payments without paying a lot of money up-front.

 

Copyright © 2010 AutoLoanDaily.com. All rights reserved. This material may not be published, rewritten or redistributed without permission.

Media Contact:
Scot Hall
(513) 381-0100 x 1000
shall@swapalease.com

CINCINNATI, Apr. 27, 2010

The American Bankers Association released a Consumer Credit Delinquency Bulletin earlier this month stating that auto loan delinquencies which include leases had dropped significantly. Additionally, this drop in delinquency was viewed by a top ABA official as an indication the economy is trending in the right direction.

The ABA noted other financial sectors outside of automotive were showing signs of improvement in terms of reduced delinquency, as well. As a result of this improvement consumer motivations appear to be shifting from a survival mode to being more want based in nature. This shift equates to a move in a positive direction for the economy overall and the boost that the automotive industry has been desperately seeking.

Lease transfer leader Swapalease.com has witnessed a shift in consumer behavior in recent weeks. Users are more commonly stating that their motivation for transferring a lease is based on desire rather than being forced to do so from a monetary perspective. “Last year at this time we saw clients needing to get out of their lessees for financial relief,” says Scot Hall, EVP of operations at Swapalease.com. “Now more clients want to get out of their lease to pursue new vehicle opportunities as opposed to having to do so”.

On the other side of the equation, buyers are able to get into a vehicle with little or no upfront costs by taking over a lease midstream. In some cases lease buyers are even able to take advantage of cash incentives offered by those exiting leases. Taking over a lease is great option for people to get into a vehicle that meets their needs without the long term commitment while being smart with their money.

For more information about Swapalease.com or how to exit your lease early, call 866-SWAPNOW or visit www.swapalease.com.

About 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.

 

We’re about to say goodbye to winter and hello to spring. If you’re like most people, this means you’re looking to start fresh and what better place to start than with your finances. 

Your car payment is your second highest monthly expense behind housing. Here are a few tips on how to save some money and simplify your bills by lowering your monthly car expenses. Added bonus: you may not have to give up that dream car you always wanted in the process.

• Create a revised budget that includes all of your monthly expenses and see where you might be able to make small changes. For example, maybe now is a good time to shop your auto insurance policy or to downsize from three cars to two.
• Get out from under a car lease you no longer want or can no longer afford to get aligned with your new and improved budget. Learn about auto lease transfers by visiting Swapalease.com – the oldest, largest and most popular car lease marketplace online. The lease transfer experts at Swapalease.com will go over your options and help you get rid of one of your monthly financial burdens quickly and cost-effectively.
• Take good care of what you have. Whether your vehicle is leased or owned, it’s always a good idea to take extra care to get regular oil changes and check-ups. This can save you thousands in the long run by avoiding unnecessary repairs, or wear and tear charges at the end of a lease. Especially during the rough winter months, make sure you check your fluid levels and tire pressure regularly.
• Simplify your bills by paying online and going paperless. If you’re unsure of your financial future, consider taking over someone else’s in-process lease for a shorter term (think 16-18 months versus 60). You’ll save on a down payment and benefit from the low payments that were based on a longer term at origination.

·         Save on gas by driving a little slower. Sure, it may test your patience a little but you’ll get where you need to go safely and save a little money in the process.