Oct 21, 2008

Financial Chaos Drives More Leasing

With the current credit crunch, lenders are getting pickier about who they finance, and they are requiring larger down payments than they were just weeks ago. So, as consumers usually do, they have found innovative ways to obtain a new vehicle, even in the midst of the tightening credit crunch. One way that is being increasingly utilized is taking over another consumer’s lease.

LeaseTrader, a company that specializes in facilitating such transfers, has seen a 30 percent increase in the number of people visiting its site seeking to take over a vehicle lease and to avoid making a down payment. The company’s executives believe this trend will grow another 200 percent in the next 12 months if the significant credit crunch persists or deepens.

“The economy is bad right now, but there are people who still want to buy or lease a vehicle for different reasons,” said Sergio Stiberman, CEO and founder of LeaseTrader online. “With the current credit situation and down payment requirements, you have a perfect storm that hurts both the auto industry and the consumer.”

With a vehicle lease transfer, car shoppers pick up the remaining portion of another consumer’s lease and simply finish out the remaining term. Using this method makes it possible to get a car in great condition, and there is no down payment required during the transaction. The tactic can allow you to avoid a lengthy loan or lease term, and in the dwindling economy, it is more affordable than ever. When users are ready to connect with consumers who are seeking a way out of a lease, it costs just $39 for credit verification and a 60-day membership, plus a $149 transfer fee.