CINCINNATI—Consumers are showing greater interest in longer-term leases, a new report suggests.
Swapalease.com, which says it is nation’s largest car lease marketplace, shared that finding among others in its second-quarter Auto Lease Trends Report .
The report shows vehicle lease trends during the second quarter on brand-specific search traffic, lease mileage report, lease listing incentive data and the appetite for domestic versus foreign lease vehicles.
Key trends:
- Consumers are now seeking leases with longer-term contracts. Forty-three percent of drivers had 24-month lease contracts in the second quarter, down from 51% a year ago. However, 41% of drivers had three-year lease contracts a year ago compared with 47% today, representing an increase for longer-term leases.
- Tesla searches are up 64% from the first quarter, among the biggest increases seen. Tesla as a brand now represents 7% of total search traffic on the Swapalease.com marketplace, second highest behind BMW (18%).
- Nearly half of lease drivers (47%) say they would either switch over to a different brand in their next vehicle, or say they aren’t sure if they want to stay with the same brand when it comes time to shop next.
- Swapalease.com said it continues to see a higher success rate of transfer for brands with favorable lease policies, such as Toyota, BMW and GM family vehicles. The company continues to see a lower rate of transfer, as well as lower rate of brand loyalty, on vehicles with unfavorable lease policies, such as Honda, Acura, Nissan and Infiniti.
Alternate Channels Sought
“We continue to be in a period where identification of the right vehicle is paramount due to inventory challenges,” said Scot Hall, EVP of Swapalease.com. “A large percentage of these shoppers continue to seek dealer-alternate channels for their next vehicle, and companies with consumer-friendly lease policies are more successful in helping these shoppers complete their transaction on time.”
The Swapalease.com survey included more than 2,500 drivers across the U.S.