More New Car Drivers Lease, Rather Than Purchase, According to AutoInsuranceEZ.com
AutoInsuranceEZ.com published the results of their latest survey, which showed that leases made up 43% of all new-vehicle financing in 2013.
May 31, 2014 (Newswire.com) - AutoInsuranceEZ.com, an online car insurance marketplace, published the results of their latest survey, which showed that leases made up 43% of all new-vehicle financing in 2013. The average percentage of new cars leased in 2013 was 43% of new cars vs. new cars purchased.
Sample data consisted of a mixture of 3,000 individuals from 21 to 65 years old with varying credit and driving backgrounds in 50 states. According to AutoInsuranceEZ.com, the average monthly payment for a new-car lease was $395, the typical length of the lease was 3 years, and the average price they paid at the dealership was $24,200.
The survey also showed that the top 3 brands with loyal buyers are Toyota, Chevrolet, and Ford. 56% of buyers are loyal to a specific car brand they previously purchased. Customers who leased their last new vehicle are much more likely to lease their next new vehicle, as opposed to someone who took out a loan or paid cash last time.
By leasing a new vehicle, many shoppers are able to get more car for less money. Leasing is more beneficial than buying when buyers want to drive a vehicle that's out of their purchase price range and they u won't likely exceed the mileage cap in a contract—usually between 10,000 and 15,000 miles per year.
Sam Brown, the marketing manager of AutoInsuranceEZ.com said: "If you enjoy having the newest high-tech features, leasing could be better for you. Since you'd be leasing every few years, each new car you lease will have the latest and greatest technology and safety features."
Many of younger buyers (25-40 years old) who participated in the AutoInsuranceEZ.com survey didn't seem to mind that they didn't own anything at the end of the lease's term. But that hasn't changed the long-term economics of leasing: it still costs several thousand dollars more than buying a new car, not to mention a newish used car.
A new car is one of the biggest purchases most of consumers make. On average, a new car loses 10% of its value the moment it leaves the lot. During the first 5 years the car depreciates by 15% each year. Deciding whether to buy or lease it can be confusing, especially for first-time buyers. Consumers should consider different factors before they decide whether buying or leasing is better for their budget and lifestyle.
AutoInsuranceEZ.com is an online marketplace connecting consumers with insurance agents and companies. By comparing multiple quotes from different insurers, AutoInsuranceEZ.com users save an average of $565 per year on their auto insurance. The company has produced guides covering the different types of auto insurance liabilities, as well as detailed reviews and assessments of car insurance companies.