Housing Situation & Gas Prices Prompt Shift in Customer Tastes

MIAMI, Sept. 19, 2007 PRNewswire/ — Consumers are starting to downsize into smaller vehicles, according to recent customer data analyzed by LeaseTrader.com, the company that helps people transfer car leases.

A growing percentage of LeaseTrader.com's customers are now exiting larger car leases in favor of smaller vehicles. Today, roughly 15 percent of LeaseTrader.com customers transferring out of their car lease do so with the intention of getting into a smaller car.

"That's a significantly large percentage for this business," stated Sergio Stiberman, CEO and founder of LeaseTrader.com. "You're talking about a noticeable shift in customer preference, which we expect to resonate with the major car companies."

Car lease transferring is a growing trend because it offers consumers a choice to change vehicles as their automotive wants and needs change. It's difficult to project your financial picture for three years, which is traditionally the average length of a lease contract. In the middle of that contract, if you want or need out, you can simply transfer the contract to another credit-qualified buyer instead of paying upwards of $10,000 to terminate the lease.

What's more, people choose to lease their vehicle because they can get more car for their money.

"Everything from the housing situation to rising gas prices have prompted many people to begin changing their automotive preference," added Stiberman. "Moderately sized vehicles like the Mercedes C class and the BMW 3 series are among today's most preferred vehicles according to customer data analyzed in our monthly LeaseTrader.com Index."

Reported each month, the LeaseTrader.com Index tracks America's most popular leased vehicles. Over the last four months, the Mercedes C-230 Sport Sedan and the BMW 3 series have shared the top two spots. With the average price of a car lease slightly rising, consumers are interested in combining luxury with affordability.