SOURCE: LeaseTrader.com

October 13, 2008 13:00 ET

More Money Down Creates Perfect Storm for Auto Industry and Car Shoppers; LeaseTrader.com Reports Rise in Activity as People Can't Afford Dealer Down Payments

MIAMI, FL--(Marketwire - October 13, 2008) - Consumers are now making larger down payments for vehicles when car shopping because of the tightening credit crunch. Cash-strapped consumers struggling with the current economic slide are finding it harder to shop for a vehicle because of the larger down payments required.

Industry analysts have pointed to this rising trend in recent media reports. LeaseTrader.com sees a strikingly similar trend since more people are utilizing vehicle lease transfer when car shopping to avoid down payments. In fact, over the last 90 days when the credit situation turned to crisis mode, LeaseTrader.com has seen a 30 percent increase in the number of people flocking to the site to take over a vehicle lease and avoid making a down payment.

LeaseTrader.com executives believe this trend will grow another 200 percent in the next 12 months if the significant credit crunch persists or deepens. "The economy is bad right now, but there are people that still want to buy or lease a vehicle for different reasons," said Sergio Stiberman, CEO and founder of LeaseTrader.com. "With the current credit situation and down payment requirements, you have a perfect storm that hurts both the auto industry and the consumer."

With vehicle lease transfer, car shoppers pick up the remaining portion of someone's lease and simply finish out the remaining terms. The consumer gets a car still in great condition and there is no down payment required during the transaction. Aside from avoiding a lengthy loan or lease term, people love this form of shopping because it is so affordable in today's economy.

It is free to browse LeaseTrader.com for the car shoppers. When users are ready to connect with others wanting out of a lease, it costs just $39 for credit verification and a 60-day membership, followed by a $149 transfer fee.

About LeaseTrader.com

LeaseTrader.com easily and affordably matches car shoppers with individuals looking to escape their auto lease. Privately held and founded in 1998, LeaseTrader.com is headquartered in Miami. For more information visit www.leasetrader.com, or call 800-770-0207.

Contact Information

  • Press Contact:
    John Sternal
    Vice President of Marketing Communications
    LeaseTrader.com
    Email Contact
    786-264-5457 - O