FEWER CARS "UNDER DRIVEN" INDICATOR SHOWS CONTINUATION OF ECONOMIC STRENGTHENING
Cars Being Driven More; Rising Demand for Small Business Customers & Confidence in Company Cars
MIAMI – (February 15, 2011) –LeaseTrader.com, the nation’s most popular car leasing website, is seeing small evidence of a continued economic turnaround based on new data that shows Americans are once again driving their vehicles more. As of the beginning of February, roughly 28.5 percent of LeaseTrader.com’s inventory was "under driven" based on mileage available stats for contracts of vehicles listed in the online marketplace, compared to 34.6% back in September.
Vehicle lease contracts stipulate drivers only use a certain number of miles each year, such as 10,000 or 12,000 miles, or face extra charges at the end of the contract if more miles have been used. The slow economy and high unemployment have translated into fewer miles driven on vehicle leases that ultimately enter the LeaseTrader.com marketplace. The new data shows that vehicles are being driven more often as they have been listed showing fewer miles remaining over the last few months.
What’s more, the inventory and listing data shows that the rate of miles being used is rising. Back in September 2010, customers in the "under driven" category were only driving 60 percent of their allowed miles and today it’s upwards of 80 percent.
"While unemployment remains at still-high numbers, there continues to be rising consumer confidence that is putting people back on the roads a bit more compared to September data," said Sergio Stiberman, CEO and founder of LeaseTrader.com.
The company also points to two other key areas that show a slight strengthening in the economy. LeaseTrader.com says demand for vehicle leases has picked up from small business customers (+4.2% vs. -1.8% a year ago). Also, personal leases are being listed for transfer at a faster clip because more people are getting/keeping company cars at a more stable rate (+4.5% vs. -1.3% a year ago).
LeaseTrader.com, the most recognized name in car leasing, easily and affordably matches car shoppers with individuals looking to escape their auto lease.