Car Leasing Industry Is Hurting

Interesting | August 17th, 2008 by 5

If you have been following our blog lately, you are already familiar with the latest news from the auto industry and especially BMW’s strategy for …

If you have been following our blog lately, you are already familiar with the latest news from the auto industry and especially BMW’s strategy for the future. In a recent development, BMW is looking to move away from their car leasing business and focus more on the financing programs through increased incentives.

Chrysler is another major car manufacturer that imposes new restrictions on their leasing program, a decision that draw some criticism. These latest decisions will affect directly the buyers that are more interested in leasing their cars rather than financing and the leasing process might become a little more complicated since third-party leasing companies will have to work out deal together with the customer and the dealership selling the car.

On top of the increased difficulties in the leasing process, I am also expecting a mark up on  the lease rates. Fewer players in the game, more opportunities for revenue.

On the bright side, there will be new companies that will step in and replace the traditional banks that used to back up the leasing programs and the consumers will have more choices on choosing the leasing company.

One of those companies is, a respected businesses in the car leasing market, which through their website, offers lease comparisons rates, purchasing and leasing advice. Tarry Shebesta, the President of, was featured in an CNBC newscast just a few weeks ago and he had an interesting point of view.

Here is the link to the CNBC interview

Staying on the same subject, other businesses will benefit from the changes in the leasing industry. is a website where people can get out of a lease or actually taking over another one. By an increase in the new car leases payments, we expect the amount of transactions to go up on LeaseTrader, with more and more people looking at the posibility of taking over a one or two year lease, rather than starting a new one with the car manufacturer.

And here is an interview with Sergio Stiberman, featured on CNBC as well.


How will this new changes work out? We don’t know exactly yet, but the automotive industry is going through some major changes and adjustments that will impact the way we think of car leasing or purchasing.

5 responses to “Car Leasing Industry Is Hurting”

  1. Mark says:

    Chrysler-Doge better watch out….I say this because of the rental car I have been driving for several weeks, which is a Dodge Avenger…..this car is a piece of total garbage….from the cheap cloth seats, the the REALLY cheap and poor molded plastic dash, to the crummy square of chrome that is around the gear shit, which, at certain times of day, reflects sunlight into the driver’s eyes to a degree that is downright dangerous..let’s not forget the lovely orange peal paint job….

    Then there is the lovely lack of low end grunt, only average cruising speed, soft and mushy ride, barely adequate brakes and terrible radio reception…..

    If Chrysler/Dodge makes it very difficult to LEASE one of the these duds, then the ONLY people who will buy them are the car rental companies….and then Detroit will wonder why they cannot sell cars and then expect the US Government to bail them out….again…

    End of rant….

  2. is another site you can use to trade your lease. I traded with a gentleman in Connecticut my Lexus SC430 for his BMW X5. It was a pretty straightforward process, and surprisingly easy to do.

    It’s a shame about the changes in the industry. I prefer to lease my higher-end vehicles, some because I can write a percentage off, but mainly because I get bored with cars at about 3 years and I’m ready to move onto another one.

  3. John Herdez says:

    haha… funny… I’m driving a Dodge Avenger rental after my 330ci was totaled on a rear-end accident on the fwy.

    These cars ARE a total piece of garbage. I removed the chrome piece around the gear shift because of the sunlight reflection!

  4. Horatiu B. says:

    @Richard Brown: Yes, I agree, is pretty good also, I know a lot of people that use it. I wish they would be more active in the blog world and educate the people on what their options are.

    Also, I was under the impression that you can write off a percentage of your car payment also, not just a lease. Am I wrong?

  5. Where can I lease an audi cheap?

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