Automotive Digital Marketing

Professional Community for Car Dealers, Marketing, Advertising and Sales Leaders

Loading... Be Patient!

Should the auto industry be paying closer attention to SubPrime Leasing? Recent comments from KBB and Autotrader analysts said competition might be encouraging lenders to explore this profile further. But Swapalease.com believes this is a segment that not only offers lower-than-expected risk, but one that could benefit from more leasing options.

According to Swapalease.com Executive Vice President, Scot Hall:

  • The strength of the CPO market can absorb more lease activity
  • SubPrime leasing might help move more smaller cars, which aren’t selling as much because of low gas prices
  • Shorter-term payment structures of 36-months means SubPrime customers would have a smaller window for payment obligations before default risk
  • Leases having shorter terms relative to other financing options will permit subprime applicants to rebuild their credit more quickly and without the potential problems surrounding refinancing
  • Lease-heavy environments would benefit from customers who would most likely stick with the same brand
  • Swapalease.com is seeing more customers in the 600s going through the lease application process

As noted recently in Auto Remarketing, “Experian Automotive mentioned in its latest report that leasing credit has loosened, as the average new-vehicle lessee had a credit score of 718 in Q1 2015, down from 721 the previous year.”

Views: 94

Tags: auto, car, credit, lease, swapalease, vehicle

Comment

Oops... You need to stop "Lurking" on ADM and become a more genuine Automotive Professional by completing your membership registration. As a registered ADM Member, you can post comments, publish your own articles (be a star!) and start Forum discussions. Stop being an online "Peeping Tom" and JOIN ADM RIGHT NOW!

Join Automotive Digital Marketing

Automotive Professional Network and Resource Exchange for Car Dealers, Managers, OEM and Marketing Practitioners seeking Best Practices.

ADM Sponsor

William B. Terry
Rated by Super Lawyers


loading ...

Please Consider Automotive Marketing Professional Community Sponsors

ADM Badge

Loading…

Based On Your Interests...

ADM Consulting, LLC

Onsite/Offsite Combination ADM Consulting, LLC Professional Services
Select the maximum monthly investment you plan to make
$USD
Sign up for

Automotive Marketing Tools

Get ADM Toolbar

Click here to take the ADM Member Survey

Getting too many emails from ADM? Click mailbox below to control which types of alerts and updates you are sent......


Instagram

SaveSave

ADM Professional Services
Phone Consultation
Topic or Issue:

Top Automotive Marketing Forum Discussions

2. BDC or Virtual BDC

Posted by Peter Stratton on February 26, 2020

Share the Best Content w/AutoMarketing Community

© 2020   Created by Ralph Paglia.   Powered by

ADM Badges  |  Report an Issue  |  Terms of Service