Swapalease.com Auto Lease Trends Report 4th Quarter A snapshot of the auto lease industry

Transcription

1 Swapalease.com Auto Lease Trends Report 4th Quarter 2017 A snapshot of the auto lease industry 1

2 About The Report Swapalease.com studies lease market trends and consumer insights each quarter. In order to gain these insights the company studies a variety of lease market data, and takes the pulse of consumer appetites for leasing by presenting surveys to more than 2,500 drivers across the U.S. The purpose of the report is to provide a deeper understanding to the industry on where U.S. auto lease activity is in the present market, and where it may be forecast to go in coming quarters. Headquartered in Cincinnati, Ohio, Swapalease.com is the world s largest automotive lease marketplace and the pioneer in facilitating lease transfers online. More specifically Swapalease.com matches individuals who want to get out of their lease with people who are looking for short-term lease agreements. Prospective buyers can search the listings for the exact vehicle they want, and then register for a nominal fee, allowing them to use Swapalease.com s safe online system to contact the prospective seller and close the deal. For more information about Swapalease.com or how to exit your lease early, call 866-SWAPNOW or visit 2

3 Auto Lease Activity in Q The fourth quarter of 2017 saw lease levels hold relatively stable compared to the previous quarters. In the Swapalease.com marketplace, Ram was among the only brands to see growth in searches, while all other brands saw a decline compared to the previous quarter. The number of leases per household continues to grow slightly, with households of one, two, and three leases each ticking up slightly. Midsize Cars and SUVs also see slight increases in terms of the type of vehicle segments seeing lease activity. Sports Cars and Trucks both saw slight declines during the fourth quarter. Swapalease.com expects leasing to continue on its stable pace, especially as dealers remain focused on incentives to push leasing during spring sales activity. Also driving this is a bevy of lease returns, with many of these people looking to get into another lease for their next vehicle. 3

4 Q4 Searches by Brand Domestic European Asian Many brands saw significant searches down across the entire Swapalease.com marketplace. Much of this Q4 activity was most likely driven by the seasonality of fall lease shopping in Q3 as well as replacement activity immediately after the hurricanes in Texas and Florida. -10% -12% -21% -10% -8% -12% 11% -1% 0% -12% -16% -6% -24% -15% 0% -24% -9% -24% -6% *Compared to Q

5 Q4 Searches by Brand Domestic European Asian Compared to a year ago, brands such as Ram, Toyota, Infiniti, and GMC all saw increases from the previous year Q4. 290% 3% 5% 13% 18% 0% 29% 13% 4% -3% -4% -10% -19% -2% -7% -13% -10% -18% -32% *Compared to Q4 previous year 5

6 12% 12% 8% 8% 2% 2% 2% 2% 0% 0% 0% 0% 1% 1% 1% 1% 0% 0% 1% 1% 3% 3% 3% 3% 1% 0% 1% 0% 1% 1% 3% 0% 1% 1% 0% 0% 0% 0% % of Total Traffic Q3 17 Q4 17 During Q4, most brands saw similar search traffic share on the site from the previous quarter. Mercedes-Benz s total search traffic grew slightly, showing the strength the brand has on the Swapalease.com marketplace. Honda and Acura each fell most likely due to their unfavorable lease policies. 6

7 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Swapalease Q4 Lease Report Q4 Avg. Payment by Brand Americans paid an average of $ per month on their leases during the 4th quarter. Up slightly from $ in the 3 rd quarter. a A CHEVY CHRYSLERCA D ILLAC RAM MB A UDI HONDA TOYOTA INFINITI S UBARU 7

8 Lease Term Trends 8

9 Q4 Lease Snapshot Y-O-Y Months Remaining Miles Remaining Incentives ,511 24,618 $ $ Q Q Q Q Q Q Q4 Lease Trends Months remaining and miles remaining numbers continue to rise from year-over-year levels, an indicator that people are looking to escape their leases earlier in their contract. 9

10 Q4 Lease Snapshot (by gender) Months Remaining Miles Remaining 18,313 27,510 Incentives $ $ Men Women Men Women Men Women Q4 Lease Trends Women continue to look to escape their leases earlier in the lease contract than men. However, men continue to offer higher incentives on their vehicles. 10

11 Q4 Lease Profiles WHAT THEY RE LEASING 67% 56% 57% 55% 56% 44% 43% 45% 44% 33% Hybrid Small Car Mid-Size Luxury Utility Men Women Acura Ford BMW Toyota MB BMW Women Men 11

12 Q4 Lease Profiles WHAT THEY RE PAYING 6% 6% 17% 16% 19% 20% 20% 20% 16% 15% 10% 11% 5% 6% 6% 5% Under $200 $200-$299 $300-$399 $400-$499 $500-$599 $600-$799 $800-$999 $ Q Q4 Average Payment Q4 vs. Q3 The average monthly payment on a lease in Q4 was $

13 Brand Trends 13

14 Q4 Lease Profiles Number of Leases Per Household 40.5% 35.3% 37.4% 40.5% 16.2% 17.5% 4.4% 5.6% 1.5% 0.8% 0.0% 0.2% 0 Lease 1 Lease 2 Leases 3 Leases 4 Leases 5 or more 2017 Q Q4 Number of Leases Per Household 14

15 Q4 Lease Profiles What Type of Lease Are You Driving? 18.7% 19.9% 12.7% 13.6% 12.7% 13.1% 4.7% 7.4% 7.5% 6.6% 3.5% 5.3% 3.5% 1.7% Small Car Midsize Car Fullsize Car Spors Car SUV Crossover Truck 2017 Q Q4 Type of Lease in the Driveway 15

16 Q4 Lease Profiles Domestic Import Yes Not Sure No 71% 29% 33% 18% 49% Type of Vehicle You d Want to Lease Stay with the Same Brand? 16

17 40.4% 37.0% 25.6% 26.6% 35.5% 32.3% 12.1% 8.7% 15.3% 14.0% 19.0% 16.2% Reasons For Change Q3 17 Q

18 Overall Confidence in the Economy Confidence in Economy Looking Ahead Confidence Level in Leasing A Vehicle Today Confidence in Leasing Versus a Year Ago Economy & Lease Confidence Indexes Q3 17 Q

19 19