Recent Survey Results Show Lease Customer Preferences Are Changing
Lease customers have their own sets of requirements, needs and wants when they are searching for a new ride but a recent survey revealed these may be changing — and fast.
According to survey results from a study by Swapalease.com, roughly a quarter of people seek leases with less than 12,000 miles per year; more than half would bypass a physical test drive; and nearly half obtain car insurance coverage greater than what’s required.
And these are just a few highlights from the survey, which also touched on preferences for down payment rates, as well as the effects of Hurricane Sandy on the leasing market.
To get a better idea what is pushing these trend shifts, Auto Remarketing spoke with Scot Hall, executive vice president of Swapalease.com.
First, he touched on the fact that drivers of leased vehicles are planning to drive less than the traditionally accepted amount.
Normally, these drivers opted for either 15,000 or 12,000 miles per year, Swapalease.com officials shared. That said, according to the survey results, roughly a quarter of respondents indicated they are looking for less than 12,000 miles each year.
“I think there are a couple factors pushing this trend. First, we are seeing more flexibility in the workplace, which is part of it,” Hall said. “For example, I know a lot of my friends are working from their home offices a couple days a week. If you are able to work from home one of two days a week, as opposed to having to go in the office five days a week, that can make a pretty significant dent in the mileage necessary.”
Hall thinks fuel prices might be having an impact, as well.
“I also think if you compare it to three to five years ago with gas prices being higher, I think people are trying to combine trips and try to be a little more efficient on that front, as well,” Hall explained.
Now, we know how much leasing drivers expect to drive per year, but what do they expect to pay for their leased vehicle up front?
The survey results showed that almost half (49.7 percent) of responders were looking for more lease deals with no money down.
Swapalease.com cited Volkswagen’s “Sign Then Drive” lease campaign as an example of OEMs tuning into this customer desire.
And this isn’t the only OEM jumping on board.
“We have definitely seen a lot of $0 down leases. In fact, I was watching basketball last night, and I saw a commercial from Honda and they had their full line at $0 down, and Toyota had a couple ads, as well. So, it is definitely something we are seeing not only on Swapalease.com, but also on the new-car front, as well,” Hall said.
And it seems these leasing drivers may be willing to sign a contract without even getting in the vehicle.
According to the survey, 58.4 percent of lease customers would be willing to lease a vehicle without getting in the car for a test drive.
“I have a couple ideas of why this is the case. I think a lot of it has to do with the fact that even your most basic cars these days are primarily high quality vehicles. I also think all the online information available to people are steering people away from test drives, as well,” Hall said.
“Also, leasing means you have a bit more flexibility. If you do end up getting put in a car you don’t like, you have some more flexibility getting out of that vehicle,” he added.
The survey also touched on another key element to the leasing process: insurance.
The results showed that 39.7 percent of consumers hold greater than required insurance coverage, with half of the respondents saying they held the required amount.
Lastly, the survey asked the following question: “If you’re interested in assuming a lease on the East Coast, are you more likely to get a vehicle inspection following Hurricane Sandy?”
Hall said the hurricane definitely had an impact on this factor of the leasing process, especially in directly affected areas.
According to the survey results, 87.9 percent of lease customers said yes to a vehicle inspection, while 12.1 percent said they were not interested.
Sarah Rubenoff can be reached at srubenoff@autoremarketing.com. Continue the conversation with Auto Remarketing on both LinkedIn and Twitter.