Why The Business Auto Leasing Market Boomed In 2014
You would think that the auto market is still suffering because of the global economic slowdown. In fact, nothing could be further from the truth! More people are getting new vehicles than ever before.
The same can also get said for the business market as well. According to Edmunds, 27% of all new cars sold were done so through lease deals. In the middle of the recession that figure was 16%. And before the recession, it was only 19%.
Part of the reason for that improvement is down to lease transfers. As the name might suggest, it’s where one entity takes over the lease of vehicles from another. The third parties that take over might be subsidiary companies, car dealers or individuals.
But what are the other reasons why auto leasing growth improved back in 2014? The following will give you an insight:
Better choice of vehicles
These days car drivers and fleet managers have one thing in common: fuel-efficient cars. Gone are the days where business executives drove around in gas-guzzlers with a BMW or Mercedes-Benz badge on the hood.
It’s now possible to enjoy high performance AND high efficiency thanks to the marvels of engine technology.
One of the world’s favorite vehicles for business is the BMW 3 Series. In particular, the 320d EfficientDynamics. That’s because it makes use of the company’s twin-scroll turbo technology. For those seeking the ultimate in greener luxury, there’s always the Tesla Model S.
Better lease deals
Lease companies are falling over themselves to get you to sign up with them. They each offer attractive deals designed to tempt you to their fold. For instance, some might offer free servicing and maintenance for the duration of your term. Others might offer to pay your car tax for you.
One thing that many lease firms have in common is that they’ll charge the lowest amount of interest on the cars they offer as possible. Often, that means fleet managers can afford to upgrade to better models without a significant increase in cost.
Cheaper insurance
With commercial insurers like Insure Fleet around, it’s easy to find the best deals on company car insurance. Some fleet managers would let their lease companies take care of insurance matters for them. But what many didn’t realize is that they make a commission on new policies sold! By going direct to insurers, firms have made large savings on their fleet insurance costs.
Thanks to the Internet, it’s now possible to get quotes from many different insurers at once. With all of them fighting to get your custom!
People are spending more money
Even though our economy is still not what you’d consider “great” people are spending money. And when they spend money with you, it means you have the cash flow to afford new car leases!
Part of that reason is down to the unemployed setting up their own businesses. Rather than staying jobless for a long time, many people decided to work for themselves. And I’m pleased to report, a lot of those folks are making more money now than they ever did working for “the man”!