May 11, 2009

Bargain Shoppers Line up to Take Over Leases

People might not be buying cars in great numbers, but they seem more than willing to lease them. LeaseTrader, an online marketplace for car-lease transfers, has reported an 11 percent increase in the number of people looking to take over an existing lease in the first quarter of this year. Demand for people waiting to take over secondary leases on LeaseTrader has now increased steadily, as evidenced by an 8 percent increase in the fourth quarter of 2008.

“We’re seeing more people sign up for our lease takeover program because they still have a desire to shop for an automobile despite the current economic climate,” said Sergio Stiberman, CEO and founder of LeaseTrader.com. “It’s not so much the economy keeping people away from auto dealers but rather a lack of options that meet their needs. With a shorter financial obligation involved and no down payment, our lease takeover program allows for more flexible options that meet the needs of today’s average family.”

Among the advantages of taking over an existing lease is the fact such a deal rarely requires you to pay a large down payment or commit to a long lease term. The company matches credit-qualified shoppers on its waiting list with individuals looking to escape an existing lease. After meeting through the Web site, the two parties then work out a deal, and LeaseTrader.com facilitates the transfer of the remaining lease contract from one person to the next. In addition to getting a vehicle still under warranty, customers are committed only to what’s left on the lease and can often negotiate a lower monthly payment with the person wanting out.

It seems that the process is getting so popular that there’s a catch -- the company has three times as many people waiting to take over a lease because of the financial benefits involved than it has people looking to ditch their leases.