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2013 was dubbed the "Year Of The Lease", which means 2014 might be known for the "Year Of The Lease Pull Ahead". What is a lease pull ahead program and how might it impact the automotive industry?
Scot Hall, Executive Vice President of Swapalease.com, offers the following insight.
Lease pull ahead programs are used by manufacturers and dealers to entice lease drivers into turning in their leases early in order to “re-lease” another vehicle. It’s a forgiveness opportunity on what’s remaining on the contract, usually offered to lessees with fewer than five months remaining on the contract.
Manufacturers such as BMW, Ford and Lincoln utilized lease pull ahead programs in 2013, and several other manufacturers, such as GM, may be planning aggressive lease pull ahead programs for 2014. These programs are beneficial to the industry as they help turn new inventory and elevate brand retention among consumers. Swapalease.com believes there will be roughly 20% more lease pull ahead program options in 2014, particularly as a result of an expected three million leases scheduled for return in the coming year.
“Swapalease.com is an advocate of lease pull ahead programs, and the company’s ‘lease transfer’ marketplace pioneered the flexible lease contract option nearly fifteen years ago,” said Scot Hall, Executive Vice President of Swapalease.com. “Today, thousands of lease drivers use the service as a way to escape their current contract in order to immediately turn around and shop for a different vehicle that meets their new automotive needs.”
Here are the top ten manufacturers Swapalease.com believes will be aggressive with lease pull ahead programs in 2014:
Headquartered in Cincinnati, Ohio, Swapalease.com is the world’s largest automotive lease marketplace and the pioneer in facilitating lease transfers online. More specifically Swapalease.com matches individuals who want to get out of their lease with people who are looking for short-term lease agreements. Prospective buyers can search the listings for the exact vehicle they want, and then register for a nominal fee, allowing them to use Swapalease.com’s safe online system to contact the prospective seller and close the deal.