Skip to main content
Loading...

Featured Post

Amazon's Black Friday Sale Begins: See What's On Offer

Amazon's Black Friday Sale is finally here. Here are some of the best deals on now.
We've had our fingers poised over our keyboards long enough in anticipation of Amazon's Black Friday Sale, which went live at midnight and will last until 25 November.

Auto Leasing Hits Record High: Do We Think About Cars Differently Now?


Once upon a time, the thought of leasing a vehicle was a foreign concept to new-car shoppers. "Why rent when you can own?", our grandparents said.

But oh, how things change. According to Experian Automotive, leased vehicles now make up a significant chunk of dealership business -- and in fact, that chunk is the biggest it's ever been.

During the first quarter of 2013, leases accounted for 27.5% of all new vehicles financed, the highest percentage Experian has seen since it began tracking stats in 2006. That figure is up more than three points from Q1 of 2012, when it was 24.4%.

What's particularly interesting is that this has happened at a time when interest rates remain low: in Q1 of 2013, the rate was 4.5%, a tenth of a point below Q1 of 2012.

Loan terms are stretching, too. In Q1 of 2012, the average loan was 64 months long; in Q1 of this year, loans averaged 65 months. Those longer loans help shoppers keep their notes low.

All of which raises a very important question: why are leases so popular now, when dealers offer a multitude of ways to make buying outright more affordable?

For starters, even though the U.S. economy seems to be recovering nicely, many customers continue looking for ways to reduce their monthly bills. Leasing is one way of doing that.

Then, too, there's pent-up demand and the urge to splurge. Luxury vehicles make up a huge portion of the leasing mix, and not surprisingly, the jump in lease numbers is happening at the same time we're seeing a surge in luxury vehicle transactions. (Case in point: Porsche just had its best May ever.) Whether such extravagance is a good thing is up for debate.

We might also suggest that the increased interest in leasing has something to do with the way we think about our vehicles. Owning a car was once a sign that you'd reached adulthood, but today, car-sharing services like Zipcar and RelayRides are gaining momentum, and here in America, we're driving a lot less often. Car ownership simply isn't as important -- practically or socially -- as it was just a few years ago.

And it's not just at dealerships where we're seeing this trend: the idea of renting what we once would've owned is now commonplace. We don't buy videos, we stream them from Netflix. We don't keep documents on our hard drive, we build them in Google Drive. We don't even have to purchase clothes anymore: we can rent them.

Is the leasing uptick part of that shift? Is the phenomenon known as "pride of ownership" on its last legs? Share your thoughts in the comments below.

Comments

Related Posts Plugin for WordPress, Blogger...
Loading...

Popular posts from this blog

Does Amazon's New FireTV Stick 4K Do It All

HDR, HDR10+, Dolby Vision, Dolby Atmos... Yup!
It seems like every year a new format comes along to make all our "old" gear obsolete. For audio video afficionados, those latest formats include Dolby Atmos immersive sound, and three different flavors of High Dynamic Range for enhanced picture quality. The three HDR flavors currently on the market include HDR 10 (the most common), HDR10+ and Dolby Vision. Dolby Vision and HDR10+ promise better picture quality than standard HDR 10 by using something called "dynamic meta data." Basically they're able to shift around the required storage bits on a scene-by-scene basis to get the best dynamic range out of movies and TV shows that are encoded in the format.

Amazon Echo Plus (Second-Gen) Review

The second-gen Amazon Echo Plus is shorter, louder and better-looking than ever. What's not to like? Here's our review.
Should I Buy The Amazon Echo Plus (2nd-gen)?
The new Echo Plus offers a radical redesign compared to the original, ditching the plastic body for a fabric mesh housing that helps the speaker blend into the home environment. It’s not only better-looking either, as a larger speaker and tweeter provide improved audio quality and Dolby Play 360 audio support helps fills the room with music. What’s not to like?

Xiaomi Mi Band 2 Review: The Best Cheap Fitness Tracker Money Can Buy

The Xiaomi Mi Band 2 is the best cheap fitness tracker we’ve seen. Read our Mi Band 2 review to find out what’s new in this excellent-value budget activity tracker.
Should I Buy The Xiaomi Mi Band 2?
With a new OLED screen the Xiaomi Mi Band 2 offers better value than ever. We’d like to see better integration with third-party apps, but at this price the Mi Band 2 is impossible to fault.

Xiaomi Mi Band 1S Pulse Best-Value Activity Tracker Review

You will not find an activity tracker that offers better value than Xiaomi's Mi Band Pulse. We put the upgraded Mi Band to the test in our Xiaomi Mi Band 1S review.
Should I Buy The Xiaomi Mi Band 1S Pulse?
With a tougher band addressing our issues with the original, and a new heart-rate sensor bringing it into line with rival activity trackers, you quite simply won't find a better-value fitness band than the Xiaomi Mi Band 1S Pulse. It still falls down on social interaction, apps and its use of a proprietary charging cable, but given the price we can accept these shortcomings.

Apple MacBook Air 2018 vs Microsoft Surface Laptop 2 Review

The MacBook Air has seen a major redesign, but how does it compare to the excellent Surface Laptop 2? We find out and help you choose which one to buy.
Should I Buy The MacBook Air (2018) Or Microsoft Surface Laptop 2?
These two laptops offer plenty of features and aesthetics that make them desirable. If you’re a Windows fan then buy the Surface, otherwise the new MacBook Air is a solid workhorse.

Like Fan Page