Saying that cryptocurrency is becoming accepted into the mainstream as a viable form of payment, eAutoLease will soon will accept cryptocurrency as payment for leasing and online auto sales.
eAutoLease, which serves customers in New York, New Jersey, Connecticut and Pennsylvania, said U.S. luxury car dealerships have begun accepting various forms of cryptocurrency over the past few years, and they have done so with increasing success.
Zoriy Birenboym is chief executive officer of eAutoLease and said the company wanted to ensure that all of its clients, including those holding cryptocurrency, can lease or buy an eAutoLease vehicle in whatever manner they choose.
“The time has come for us to join the forward-thinking commercial world to make these transactions possible,” Birenboym said in a news release. “Internet commerce is our specialty — so we're researching how best to enable crypto payments.”
eAutoLease said because it built its business around the concept of leasing vehicles through the internet, it's no surprise that the company is not far behind the digital currency trend.
eAutoLease said it is committed to remain a cutting-edge, online company.
Adding crypto to its forms of payments, the company said, is the next logical step.
Birenboym tells his team of experts and customer base, "eAutoLease.com is the future and just the tip of the iceberg to what the future holds."
The company said it is Intimately aware of the ins and outs of online transactions for automobiles. eAutoLease said once it is fully prepared to accept the digital currency, the process will be smooth, secure and easy to process.
eAutoLease said that before entering into any agreements, it fully vets all vendors and payment processors.
Among the many intriguing findings from the Swapalease Q4 Lease Report, not only are consumers becoming more interested in leasing a Tesla, they appeared to be driving more in general judging by the softening amount of mileage left on a lease contract up for a takeover.
Analysts determined consumer searches for Tesla vehicles on the Swapalease.com marketplace increased 55% over the past 12 months, among the largest increases by any brand in the site’s recent history.
Furthermore, whether it’s a Tesla, another luxury vehicle or a base model for routine transportation, Swapalease reported that the average amount of miles remaining dropped from 23,718 in the third quarter to 21,921 in Q4.
However, when looking at the remaining mileage metric by gender, Swapalease discovered a stark difference in the Q4 averages.
For male lease holders looking to exit the contract, the site indicated the average amount of mileage left stood at just 18,199. But among female lease holders, the average came in much higher at 27,655.
Men looking to depart a lease in Q4 had a little lease term remaining at 21.6 months on average. Women wanting to move on from the vehicle lease still had an average of 25.9 months left.
But no matter male or female, if they leased a Tesla and want to make a change, Swapalease found demand in Q4.
“The consumer demand for Tesla is very real, and while Tesla doesn’t have a traditional retail network, the vehicle’s makeup positions it perfectly for a lease environment,” Swapalease.com executive vice president Scot Hall said in a news release.
“As it’s in the luxury category, many drivers enjoy the ability to lease rather than finance a Tesla,” Hall continued. “Furthermore, drivers feel the battery technology is improving at a rapid rate and enjoy the ability to change or upgrade every few years.”
Elsewhere in the luxury lease space, the report indicated BMW’s percentage of total traffic reached 19% during the fourth quarter, up from 17% during Q3. Mercedes-Benz dipped slightly from 8% to 7% on a sequential basis.
Swapalease added that other foreign brands such as Honda, Acura, Nissan and Infiniti also continue to see falling search numbers in the marketplace.
“While these brands have traditionally experienced higher-than-average lease rates, they continue to experience lower-than-average search traffic and demand in the marketplace due to their unfavorable lease and lease transfer policies,” the site said.
Also of note in the report that can be downloaded here, Americans paid an average of $519.46 per month on their leases during the Q4, down from $521.90 in Q3.
Swapalease broke down Q4 averages by automaker, pinpointing readings for 19 different brands. That rundown included:
Chevrolet: $424.21
Ford: $450.91
Chrysler: $380.46
Buick: $360.61
Cadillac: $754.84
GMC: $560.10
Ram: $536.21
BMW: $813.37
Mercedes-Benz: $826.72
Volkswagen: $404.91
Audi: $729.96
Lexus: $608.10
Honda: $384.61
Nissan: $375.71
Toyota: $395.87
Acura: $503.07
Infiniti: $536.52
Hyundai: $398.19
Subaru: $425.81
According to the report, the average incentive to take over a lease dropped from $583.65 in Q3 to $545.66 in Q4.
More leasing trends
Wantalease.com, a sister marketplace to Swapalease.com, also shared some leasing trends recently, delving into what analysts saw in January.
While many truck lease payments have remained steady, experts noticed that SUV lease pricing is experiencing a split in both increases and decreases, depending on the brand.
While Honda is increasing their lease payments on SUVs in the month of January, Wantalease indicated Toyota is decreasing lease payments for its SUVs.
The three largest decreases were the Toyota 4Runner with a 17.78% decrease in payment, followed by the Toyota RAV4 with a 12.62% decrease. Also softening was the Nissan Pathfinder with a 5.31% decrease.
Wantalease said the 4Runner is offered at $299 per month, the RAV4 is available at $209 per month, while the Nissan Pathfinder can be landed for $329 per month.
The largest lease price increases for SUVs in the month of January include the Honda Pilot, with a 12.06% increase from December, and the Honda CR-V with a 6.66% increase. Wantalease reported the Honda Pilot is listed at $329 per month, and the Honda CR-V is available at $239 per month.
“SUVs continue to be a category that garners a great deal of interest from new customers,” Hall said in another news release, as he also serves as executive vice president of Wantalease.com.
“It’s this demand that you continue to see some SUV brands increasing their lease offers, while others lower deals in hopes to sway potential customers away from the competition,” Hall added.
Currently, Wantalease discovered the Ford Focus is priced the lowest of all leases coming in at just $159 per month. The Ford Focus is priced lower than the Nissan Sentra, which was the vehicle holding the lowest lease offer last month at $149.
This month, the Nissan Sentra increased in monthly payments by 4.71%, according to Wantalease.
Other lease increases include models in the luxury category, which has seen an explosive increase in monthly payments.
Wantalease mentioned the BMW X5 M50i had a 20.88% increase and the Lexus IS 300 had a 20.34% increase. The BMW X5 M50i is now offered at $1,049 per month, while the Lexus IS 300 is now available at $349 per month.
The approval rate at Swapalease.com closed 2020 on a high note, prompting an “optimistic” outlook for this year.
Site officials reported on Tuesday that the approval rate for applicants looking to take over a vehicle lease came in at the highest rate of the year in December, registering in at 72.7%.
That reading to round out 2020 marked quite a turnaround for approvals compared to when the pandemic started. Swapalese recollected that the April approval reading sunk to 63.8%, marking the lowest rate reported since January 2018.
The reading to finish 2020 also was similar to how 2019 and 2018 concluded, too. Swapalease noted the December 2019 approval rate was 72% while the December 2018 stood at 71.4%.
With the holiday season being an optimal time to buy or lease a vehicle, site officials said it is no surprise that approval ratings saw an increase in December.
According to Experian’s State of the Automotive Finance Market Report, in the second quarter of 2020, nearly 26% of new vehicles were leased. While this number is down from pre-pandemic levels, Swapalease highlighted that many of its site visitors have solid credentials available to take over a person’s vehicle lease.
Officials added that the inclination to have more flexibility through leasing amidst economic uncertainly may contribute to a rise in shoppers who are looking to lease vehicles.
“The automotive industry took a hard hit in early 2020, especially as stay-at-home mandates were implemented and businesses were temporarily shut down,” Swapalease.com executive vice president of operations Scot Hall said in a news release.
“We’ve continued to see slight increases month-over-month since May, and we’re optimistic at the outlook for the 2021 calendar year,” Hall added.
New-vehicle leasing still isn’t quite at the level seen before the pandemic started, according to data provided by Experian Automotive.
During the first quarter of this year, Experian reported that 30.19% of all new-model deliveries were connected to a lease. In the second quarter with COVID-19 in play, analysts found that leasing softened to 25.81%.
The leasing industry generated a bit of a rebound during the third quarter, but Experian found that it still remained below the 30% level, coming in at 26.2% of new-vehicle financing.
For reference, new-model leasing in the first quarter of last year stood at 33.43%.
Experian drilled deeper into the Q3 data and discovered the top 20 new-vehicle lease market holders. The rundown of automakers is as follows:
1. Honda: 13.10%
2. Toyota: 9.60%
3. Chevrolet: 8.70%
4. Ford: 6.98%
5. Jeep: 5.73%
6. Nissan: 5.69%
7. BMW: 4.46%
8. Hyundai: 4.19%
9. Kia: 4.07%
10. Mercedes-Benz: 3.91%
11. Lexus: 3.73%
12. Subaru: 3.24%
13. Mazda: 3.02%
14. Volkswagen: 2.92%
15. GMC: 2.32%
16. Audi: 2.31%
17. RAM: 2.21%
18. Acura: 2.20%
19. Buick: 1.88%
20. Cadillac: 1.56%
And after compiling that list, Experian also pinpointed the top 10 new models leased during the third quarter and their share of the overall market. That grouping included:
1. Honda Civic: 3.47%
2. Honda CR-V: 3.19%
3. Toyota RAV4: 2.37%
4. Honda Accord: 2.11%
5. RAM 1500: 2.11%
6. Ford F-150: 2.09%
7. Chevrolet Equinox: 2.03%
8. Jeep Grand Cherokee: 1.95%
9. Chevrolet Silverado 1500: 1.84%
10. Nissan Rogue: 1.59%
Perhaps you’re well past the age to go trick-or-treating.
But Swapalease.com announced five “spooktacular” lease deals for the Halloween holiday that might help your dealership move some metal, which certainly could be a sweet way to close the month.
The “spooktacular” lease deals aren’t just for base-model units, either, as site experts found diverse vehicle options based on new-lease price data for October.
The vehicles that Swapalease pinpointed include:
— Nissan Sentra: Offered at $149 per month, Swapalease highlighted the Nissan Sentra offers a crisp and modern design with advanced technology features such as Zero Gravity front seats and a 2.0-liter, 4-cylinder engine that delivers 20% more power and 15% more torque. The Sentra comes with upgraded dual-zone automatic temperature control and smart interior technology for a more comfortable ride.
— Acura ILX: Available at $219 per month, site officials recapped that the Acura ILX features a powerful 201-hp engine with amplitude reactive dampers, creating an intensely agile and responsive drive-feel. The interior of the ILX exudes a refined sportiness with leather-trimmed steering wheel, door panels and seating surfaces with contrast stitching for a premium look and feel.
— Volkswagen Passat: Offered for $189 per month, Swapalease mentioned the Passat helps passengers get connected on-the-go. Equipped with a 6.3-inch touchscreen sound system, the Passat features voice control with an intuitive proximity sensor behind a clear glass display. Passengers can see, feel and hear the difference.
— Ram 1500 Tradesman: Available at $179 per month, site officials noticed that the Tradesman boasts improved efficiency and off-road capabilities. The truck comes equipped with a multi-function tailgate that was re-engineered to add 60/40 split swing-doors that make it easier to load, unload and wash.
— Chevrolet Equinox: Offered at $239 per month, Swapalease acknowledged the Chevrolet Equinox is more than just a way to get around. It’s a chance to get away. The Chevy Safety Assist feature is now standard on all Equinox models and includes six advanced safety technologies that can help drivers look out for potential hazards and may even prevent them from happening.
While Equifax gave a snapshot of the new leases booked during one week in September, Swapalease.com reported how many lease-transfer approval came during the entire month.
Turns out, Swapalease found that September posted one of the highest approval rates of the years as site officials pegged it at 67.6%, a slight increase from the August rate of 67.1%.
Compared to previous Septembers, the reading is down. Swapalease indicated last September’s rate was 72.9%. And in 2018, the September approval rate came in at 69.8%
“This comes as no surprise considering market fluctuations related to the COVID-19 pandemic,” site officials said.
While down from previous years, Swapalease did point out the approval rate has been relatively consistent since March when the pandemic intensified and triggered an initial swing. Approval ratings registered in at 69.3% in March and then dropped to 63.8% in April.
Swapalease executive vice president Scot Hall offered this assessment when looking at this COVID-19-impacted year as a whole.
“As we have moved deeper into 2020, we’re seeing growing confidence in car shopping from the consumer, but they’re still looking to either escape or downsize their lease and find an affordable means of transportation with a shorter financial commitment,” Hall said.
“Shopping has continued to increase slowly month over month, and we anticipate there may be a slight shift in spending habits once again as the holiday season approaches,” he added.
As far as what leases might be transferred down the road, Equifax estimated that during the week of Sept. 13, finance companies originated 5,400 leases, totaling $81.4 million in value.
Fair announced in mid-September that it was launching 2- and 3-year used-car lease options for consumers, in addition to its existing month-to-month option.
Chief executive officer Brad Stewart joins the Auto Remarketing Podcast discuss this new offering, share his thoughts on the overall market potential for pre-owned leasing and more.
“These tailored lease options will make a car more accessible to more people and give our customers an even greater ability to create a personal driving experience that suits their circumstances and lifestyle,” Stewart said in a news release when the new options were announced. “We’re excited to offer a new way for customers to get an affordable used car — from right where they are and for only as long as they want to keep it.”
For more with Stewart, listen to the podcast below or visit the Auto Remarketing Podcast page.
Download and subscribe to the Auto Remarketing Podcast on iTunes or on Google Play.
This week, Dent Wizard International introduced a version of its popular AlwaysNu vehicle protection, specifically for leased vehicles.
As one of the largest providers of automotive reconditioning services and vehicle protection products in North America, Dent Wizard explained that AlwaysNu Lease Protection provides protection during the lease as well as reimbursement for common turn-in charges at the end of the lease.
“Too often lease customers will let cosmetic and other damages to their vehicle go un-repaired, when the reason for leasing in the first place is to drive a new-looking vehicle.” said Lindsey Bird, division president of Evolution Vehicle Products by Dent Wizard.
“AlwaysNu Lease Protection keeps their vehicle looking pristine and reduces turn-in charges,” Bird added in a news release.
AlwaysNu Lease Protection lease term coverages include:
— Dent repair with hail benefit: Unlimited Paintless Dent Repairs (PDR) of dents and creases up to the size of a credit card. Covers hail or acorn damage up to the amount of customer’s comprehensive insurance deductible or the amount of the repair, whichever is less and when the damage is repairable by the Dent Wizard PDR process. Factory finish remains intact, with a lifetime warranty on repairs.
— Interior repair: Unlimited interior repairs of the cabin area caused by rips, burns, tears, holes and punctures, up to two inches in length or diameter. Covers seats, carpet, leather, vinyl, plastic and cloth surfaces. Covers the steering wheel, armrests, door panels, headliner, center console and cargo areas.
— Windshield repair: Unlimited repairs of damage to the windshield glass caused by propelled rocks, stones or other road debris. Covers minor chips, stars or nicks. Helps prevent the spread of cracks, which can affect the safety and integrity of the glass.
— Key protection: Provides for the repair or replacement of keys, key fobs and transponders if they become lost, stolen or damaged. Provides for the replacement of non-programmable keys on a key ring if they become lost, stolen or damaged.
— Roadside assistance: Flat tire change; key lockout service; towing service benefit; fluid delivery service; winching service; and battery service.
— Rental, rideshare or transportation benefit: Provides reimbursement up to $50 per claim.
AlwaysNu Lease Protection lease end coverage also includes:
— Lease wear and tear benefit: Reimbursement for common excess wear and tear charges the lessor may assess at the end of the lease, including coverage for: Tire wear and tear; glass breakage; head lamps, running lights or fog lights; chrome, metal, moldings and trim; discoloration, stone chips and sand damage; audio equipment, speakers and systems; and bumper scuffs and paint scratches.
Furthermore, optional lease term coverages include:
— Cosmetic Wheel Repair or Replacement: Cosmetic wheel repair of damage caused by scrapes and curb rash. Covers painted, polished, chrome, machine finished, physical vapor deposition (PVD), multi–piece wheels and wheel covers. Wheels that are not repairable will be replaced.
— Windshield replacement: Replacement for windshield damage beyond repair using OEM glass and recalibration of Advanced Driver Assistance System (ADAS) cameras. Partnered with Safelite Auto Glass.
“Certain features may vary or may not be available in all states,” Dent Wizard said.
For more information, send a message to customersupport@dentwizard.com or call (844) 809-1800.
Experian identified leasing market penetration among the top 20 automakers that booked that kind of financing during the second quarter.
Swapalease.com also pinpointed two factors that could enhance brand loyalty in the leasing segment; information that could be especially valuable since the site discovered nearly eight out of every 10 leaseholders would like to exit their lease contract before it is completed.
First, let’s examine which OEMs are doing the most leasing nowadays, according to Experian’s Q2 2020 State of the Automotive Finance Market report. The top 20 automakers for leasing market share include:
1. Honda: 13.55%
2. Toyota: 9.73%
3. Chevrolet: 7.99%
4. Ford: 7.77%
5. Nissan: 5.84%
6. Jeep: 5.79%
7. Mercedes-Benz: 4.80%
8. BMW: 4.58%
9. Hyundai: 4.19%
10. Kia: 4.05%
11. Lexus: 3.59%
12. Subaru: 3.04%
13. Mazda: 2.84%
14. GMC: 2.33%
15. Volkswagen: 2.29%
16. Acura: 2.17%
17. Audi: 2.15%
18. RAM: 1.82%
19. Volvo: 1.78%
20. Cadillac: 1.64%
Furthermore, Experian noted the particular models that held the highest leasing market share in Q2. That rundown included:
1. Honda Civic: 4.5%
2. Honda CR-V: 2.8%
3. Toyota RAV4: 2.7%
4. RAM 1500: 2.3%
5. Honda Accord: 2.3%
6. Chevrolet Equinox: 2.2%
7. Ford F-150: 2.2%
8. Jeep Grand Cherokee: 2.1%
9. Ford Explorer: 1.9%
10. Toyota Tacoma: 1.8%
In a separate project, Swapalease.com commissioned an online survey in July and asked 500 consumers and 500 dealership executives a series of questions about vehicle leasing, the experience surrounding lease shopping as well as lease transfer.
Site officials discovered 58% of consumers polled said they would either consider or definitely escape their lease without breaking the contract or face any other financial penalty.
And 73% of survey participants told Swapalease that they would be willing to stay with the same brand if they had an easy time transferring their lease.
Furthermore, 66% of dealers told Swapalease that they also believe an easier way of conducting lease transfer would increase the chance of a person to stay with the same brand.
With the survey being conducted in July, the top reasons cited by leaseholders for wanting out of the contract likely won’t surprise dealerships. They included:
— 39% lost their job
— 21% have been furloughed
— 29% say their company is making cuts
“Automobile leasing proves beneficial since it allows people to constantly drive a nicer car at a lower monthly payment, and for a shorter period of time, compared to buying one,” Swaplease said in a report that accompanied the study findings.
“It is also estimated that a majority of all lessees look to escape their contracts early for a variety of reasons aforementioned. This number is risen sharply due to the financial strains COVID-19 has placed on many households,” the report continued.
“Unfortunately, early termination of a car lease may cost several thousands of dollars, making it financially impossible for many to exit their lease agreements without facing hefty penalties from the leasing company or dealer,” Swapalease went on to say in the report.
Dealers appear to want to help because it would be mutually beneficial as mentioned in the Swapalease.com report.
The site discovered through its survey that 27% of dealers believe their sales would increase 9% or more if they could help customers transfer out of their lease into a different vehicle.
Swapalease pointed out this level climbs to 46% when dealers think sales would generate at least a 7% lift.
“When you have a customer that wants or needs out of their lease for any number of reasons, they appreciate a brand’s willingness to help and that plays a significant role in the decision they make when deciding on their next vehicle,” Swapalease executive vice president Scot Hall said in a news release.
“Over the years we have seen time and again thousands of people who feel the frustration of a brand that places roadblocks on this process, and that frustration single-handedly makes their decision to move to a different brand in their next vehicle,” Hall added.
While some industry metrics are moving more significantly, Swapalease.com is seeing only modest changes in approval rates for consumers using its site to secure a short-term transportation solution.
Site officials reported earlier this week that lease credit applicants registered a 65.1% approval rate in July, a slight decline from the June rate of 67.1%.
Swapalease noticed July included a higher number of applicants with qualifications for taking over another person’s lease contract yet saw a slight decrease in the number of applicants who were approved. The approval ratings are also slightly lower than the same month during the past two years.
Last July, approximately 69.1% of applicants were approved, and in July of 2018, a healthy 71.2% of applicants gained approval, according to Swapaleae.
Site officials acknowledged approval rates have continued to fluctuate since January when the spread of COVID-19 first began. The approval rates continued to rise in January and February with slight fluctuations each month from March to July.
“While the Consumer Financial Protection Bureau reported credit applications for automotive loans fell between 30% and 50% since March, we’ve been fortunate to see an increase in shoppers and credit applications to take over another person’s lease each month,” Swapalease executive vice president Scot Hall said in a news release.
“Shoppers are looking for alternative means to vehicle acquisition, and sites like Swapalease.com make that possible. Shoppers want short-term commitments with low risk during unprecedented times,” Hall went on to say.
