SAN DIEGO -

LEAP Financial, a vehicle leasing company that serves consumers who have difficulty obtaining credit, recently tallied up the estimated lender benefits from its recovery program.

During the 12-month period that ended March 31, the company indicated the average lender benefit for each customer that settled with LEAP was approximately $1,900, totaling a sum of more than $2.3 million.

Executives explained this total reflects an estimated number by modeling the lender’s reduction in expenses associated with the repossession process and the increased income earned from selling the vehicle to LEAP instead of selling it at auction.

In addition to lender benefits, LEAP also quantified consumer benefits.

During the past 12 months, executives determined that 85 percent of customers had a lower payment with LEAP than with their prior lender. On average, customers received a $125 reduction in their monthly payment.

The company said consumers chose to do business with LEAP for a variety of reasons, including payment savings and vehicle retention.

LEAP offers lease programs for consumers who are facing repossession or bankruptcy, providing a possible alternative to losing their vehicle.

LEAP Financial chief executive officer Tim Condon contends these figures illustrate the value of the company’s unique business model, which is geared to allow lenders to decrease losses on their defaulted auto loans while customers can keep their vehicle.

Condon thinks this is an ideal tool for lenders that helps them resolve defaulted auto debt.

LEAP can purchase the vehicles which secure these defaulted auto loans from lenders at a price that is higher than lenders would otherwise receive at auction. LEAP then can lease the vehicle back to the customer with terms they can afford, providing a benefit to everyone involved.

"LEAP’s role in the market is unique because we provide benefit for both lenders and consumers," Condon stated.

"In situations when a lender is unable or unwilling to modify the loan, LEAP can provide an alternative that allows the consumer keep their vehicle," he continued. "Our lender partners are an important part of the LEAP transaction, and we encourage consumers to work with their lender throughout the process."

For more information about LEAP, contact Lindy Hood at lhood@leapfinancial.com.