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It's been well documented that car shoppers have fewer EV/hybrids in mind given today's gas prices. Now comes word that drivers of these fuel-efficient vehicles are also looking to walk away in an effort to upsize, too. Below are two stories trending in the automotive world with personal financial consequences.
Walking Away From A Gas-Sipper
Electric (EV) and hybrid vehicle sales have steadily increased since 2012, reaching 88,149 sales so far in 2014. However, with falling gas prices, dealers have recently found it more difficult to move these vehicles out of their lots and onto roads. More buyers are coming in to purchase that truck or SUV they wanted but opted not to get with high gas prices. The demand for and sales of SUVs and trucks has grown 15% from October 2013. However, sales for both Ford’s C-Max and Toyota’s Prius dropped, 22.5% and 13.5%, respectively. Even on Swapalease.com, there has been an 11 percent increase in hybrid and electric vehicle listings compared to the same time last year. A few of the most common hybrid and EV vehicle listings on Swapalease.com are the Toyota Prius, Chevrolet Volt, and Ford C-Max. Swapalease.com reports buyer demand on these fuel sippers has held up, particularly for contracts that are 16 months or shorter. Click here to read more.
Brand Loyalty Is Higher When Leasing
Experian recently found that auto brand loyalty was, on average, a success rate of 49.5 percent, meaning that dealerships had a 50/50 chance of getting return business for the same brand. This information, listed in a recent Forbes article, also mentioned that common knowledge would have longer-term owners to be brand-loyal customers, however, the opposite is true. Lessees who take on a 12-month vehicle lease are 57.3 percent more likely to be a brand-loyal customer. For lease cycles that are shorter than 36 months, brand loyalty is even higher. Swapalease.com recently polled many of its lease transfer customers and found that roughly 68 percent of those polled said they were interested in staying in the same brand family. This number shoots up to 75 percent when it is a luxury brand such as BMW, Mercedes-Benz or Lexus. Click here to read more.