LeaseTrader.com: More Parents Using Children as Co-Signer
MIAMI — LeaseTrader.com has found a rising amount of parents are turning to a different source to get into a favorable contract for a vehicle — adult children.
In fact since 2008, site officials have spotted a 28.9-percent increase in middle-age parents asking their children to be a co-signer on a LeaseTrader.com vehicle lease.
LeaseTrader.com believes the reason why parents are asking their children for assistance stems from housing foreclosures and a national unemployment rate that's still high. These parents have damaged their credit and are unable to lease a vehicle.
Site officials also indicated this trend is especially prevalent in places such as southern California and Florida where high foreclosure rates are still plaguing the region.
On average, LeaseTrader.com found that people who have fallen into this rising category have taken over a lease payment less than $399 per month with less than 18 months remaining on the contract.
"Each day people find a way to cope with the effects of the housing situation and recession that damaged their credit status," stated Sergio Stiberman, chief executive officer and founder of LeaseTrader.com.
"People can afford to take over the lease payment but have issues qualifying for credit," Stiberman continued. "Credit is still the most important aspect when getting a car lease, so many of these customers have been turning to their children for help."