Swapalease.com Auto Lease Trends Report 3rd Quarter | 2016 A snapshot of the auto lease industry 1
Auto Lease Activity in Q3 | 2016 With the broader automotive market remaining on pace for another stellar sales year, auto lease activity also continued at a healthy pace. Swapalease.com, the nation’s largest online marketplace for auto leases, analyzed its complete marketplace for activity trends during the third quarter of 2016. More than 50,000 data records were analyzed for the information in this report. Additionally, Swapalease.com presented an online survey in front of more than 2,500 Americans during the month of October, 2016, to gauge their views on their perspectives and appetite for auto leasing, as well as auto shopping in general. The report on the following pages depicts a mostly healthy auto lease market currently, with insights into lease payments; length of terms; desired brands for leasing; reasons for lease exits; as well as demographic/gender breakdowns of lease activity.
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Swapalease Q3 Lease Report
Q3 Searches by Brand The majority of brands saw search activity fall during the third quarter compared with search activity during the second quarter, with a few domestic brands seeing gains in search activity on Swapalease.com. Swapalease.com officials believe this drop off was mostly seasonal, and they expect search traffic to rebound in the fourth quarter as endof-year shopping patterns take shape.
European
Domestic
Asian
5%
4%
1% -2%
-2% -6%
-1%
-3% -6%
-8% -11%
1%
-11%
-10%
-10% -15%
-9% -9% -13%
*Compared to Q2 - 2016
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Swapalease Q3 Lease Report
Q3 Searches by Brand When looking at brand-specific search traffic in the third quarter versus the same quarter a year ago, it’s evident the impact the Volkswagen scandal has had on American auto lease shoppers. What’s more, domestic auto leases are gaining ground on their foreign lease competitors.
European
Domestic 9% 4% 5%
3%
Asian
8%
9%
7% 3%
2% -1%
1%
-4% -3%
-6%
-5%
-10% -15%
-14%
-28%
*Compared to Q3 – previous year
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Swapalease Q3 Lease Report 15% 12% 9%
8% 5%
7% 4% 4%
6%
5% 2%
2%
6% 2% 2%
1%
2%
1% 1%
Q3 Searches | % of Total Traffic While domestic brands continue to make gains, European brands in particular remain in control of overall search traffic. BMW and Mercedes-Benz have historically led traffic on Swapalease.com, and this remained stable during the third quarter. Lexus, Cadillac and Audi – all luxury makes – also see strength in the market. Brands such as Ford, GMC and Chevy are also showing strength, mostly due to volume. Many Asian brands, with the exception of Toyota, continue to demonstrate lower search traffic, as customers are now accustomed to their unfriendly lease policies.
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$327.70
$362.06
$546.45
$450.32
$340.98
$325.91
$334.40
$534.90
$357.54
$594.00
$783.27
$689.00
$543.89
$370.82
$381.90
$416.07
Americans had an average monthly payment of $469.41 for leased vehicles on the Swapalease.com marketplace during the third quarter of 2016.
$403.99
$652.45
Q3 Avg. Payment by Brand
$503.06
Swapalease Q3 Lease Report
A
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Lease Term Trends
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Swapalease Q3 Lease Report Q3 Lease Snapshot Y-O-Y
Months Remaining
Miles Remaining
Incentives
23,149
$673.00
23.2 22,279
21.5 Q3 2015
$641.00
Q3 2016
Q3 2015
Q3 2016
Q3 2015
Q3 2016
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Swapalease Q3 Lease Report Q3 Lease Snapshot (by gender)
Months Remaining
Miles Remaining
Incentives $560.00
19.6
Men
25.2
Women
20,211
Men
24,629 $470.00
Women
Men
Women
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Swapalease Q3 Lease Report Q3 Lease Profiles
WHAT THEY’RE LEASING
AUDI ACURA FORD TOYOTA BMW
6.3 6.3 9.4 16.7 16.7
0 59%
62%
41% 38%
Hybrid
Men
15
20
55% 45% 28%
Small Car Mid-Size
10 Women
72% 57% 43%
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Luxury
Women
Utility
LEXUS TOYOTA MB FORD BMW
6.3 7.5 10.1 11 13.8 0
5
10
15
Men
10
Swapalease Q3 Lease Report Q3 Lease Profiles
7.0% 17.0% 25.5% 17.2% 16.6% 8.7% 3.9% 3.9%
Average
$
458.15
HYBRID
SMALL CAR
MID-SIZE
LUXURY
Men
Women
$492.56 $417.98
Under $200 $200-$299 $300-$399 $400-$499 $500-$599 $600-$799 $800-$999 $1,000 or more
$687.23 $471.38
Response Percent
$443.89 $438.25
Answer Options
WHAT THEY’RE PAYING $381.67 $416.95
If you did need to lease a vehicle today and found a vehicle that you really liked, what’s the maximum monthly payment that you would consider?
$382.11 $395.16
Swapalease Leasing Index Survey 3rd Q 2016
UTILITY
11
Brand & Gender Trends
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Swapalease Q3 Lease Report Q3 Lease Profiles 5 OR MORE
0.4%
4 VEHICLES
1.3%
3 VEHICLES
3.1%
# of Lease Vehicles Per Household How many vehicles per household were leased in Q3? Nearly a quarter of Americans say they’re leasing two or more vehicles in their household.
2 VEHICLES
19.7%
1 VEHICLE
34.7%
0 VEHICLES 0.0%
40.8% 10.0%
20.0%
30.0%
40.0%
50.0%
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Swapalease Q3 Lease Report Currently Driving
AUDI HONDA VOLKSWAGEN CADILLAC CHEVROLET LEXUS TOYOTA MB FORD BMW
What You’d Rather Switch To…
GMC CADILLAC HONDA TOYOTA CHEVROLET AUDI FORD LEXUS MB BMW
3.1% 3.5% 3.8% 3.8% 5.9% 6.2% 9.0% 10.0% 10.7% 14.1%
0.0%
5.0%
10.0%
15.0%
When asked what they’re currently driving versus what they’d want to switch to, many Americans said they would make some changes on what they’re driving.
2.8% 3.3% 3.7% 4.6% 5.3% 5.5% 7.2% 8.1% 10.3% 15.3%
0.0%
5.0%
10.0%
15.0%
20.0%
Interestingly enough, Volkswagen not only dropped out of the top 10 list, but it fell all the way to 31st with a 0.66% share.
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Swapalease Q3 Lease Report Q3 Lease Profiles Domestic
Import
Yes
Not Sure
No
23% 31% 45% 69% 32%
Type of Vehicle You’d Want to Lease
Stay with the Same Brand?
Most Americans want to lease a foreign vehicle, but nearly a third say domestic.
Most Americans are divided on staying with the same brand for their next vehicle. Nearly three fourths are either unsure, or would want to switch to a different brand.
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Swapalease Q3 Lease Report Q3 Reasons For Exiting a Lease Women
53.1%
Men
FAMILY SIZE CHANGE
INCOME CHANGE
LOCATION CHANGE
20.3%
9.4% 4.7%
17.9% 17.2%
7.3% 10.9%
14.8% 17.2%
28.1%
34.0% 32.8%
41.0%
Most men said they’re escaping their lease based on “want”, as opposed to women, who are largely exiting their lease based on a “need”.
DESIRED BRAND CHANGE
DESIRED VEHICLE TYPE
NO LONGER DRIVING VEHICLE
OTHER
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