While it might not be as frenetic as the great tulip craze of 1637, leasing activity on LeaseTrader.com is strong enough that consumers looking to take over car leases outnumber those seeking to transfer them by a rate of four to one.
Those numbers offer at least some perspective on the amount of business being lost by institutions that are significantly decreasing their leasing activity, or leaving the market altogether.
The site, which facilitates lease transfers between consumers, works with a number of financiers. More than 45,000 transactions have been conducted on the site so far this year, up from 35,000 transactions a year ago, said Sergio Stiberman, the site’s founder and chief executive.
About 20,000 leases are currently listed on the site, ready to be transferred. Borrowers must be current in order to post their lease on the site. Leases acquired through LeaseTrader.com are potentially more appealing because the terms are shorter — since borrowers are taking over current leases — and because no down payment is required. Potential lessors pay $39 for a 60-day membership and their credit is checked prior to shopping, Stiberman said.
Demand has been particularly strong for sport-utility vehicles, Stiberman said, noting that there has been a 24% increase in SUV leases from 2007.
—Mike Gibb
