As the economy has slowly recovered from the Great Recession, the auto industry has seen a major increase in auto sales and loan lengths. Recently, lenders have become more comfortable loaning to subprime and deep subprime buyers. Researchers and analysts have taken notice and are weary of what these practices hold for the future of the auto industry.
An article in the Associated Press stated that financial institutions have begun to offer longer loan lengths and approve borrowers who would have been denied the loan in the past. As the average price of a vehicle has been consistently rising, borrowers have been forced to take out six and seven year loans in order to keep the monthly payments more manageable. And it’s not just on the finance side, as Swapalease.com has also experienced a rise in subprime shoppers applying for lease takeovers.
Dealers have also been offering big discounts in order to get more drivers through the door. Experts are cautioning lenders and the auto industry of the possible future effects because these discounts and lengthy loans resemble the same reasons of the economy’s downturn a few years ago.
Taking over a car lease is a smarter and more cost-effective choice to purchasing a car, particularly for those individuals in good credit standing. Why take out a 72-month loan when you can take over a car lease on Swapalease.com and drive a newer car every year or so? Drivers looking to exit their lease early are matched up with individuals looking to take over that lease. Don’t get sucked into a long-term deal when there are short-term solutions to getting into that sought-after vehicle.
Headquartered in Cincinnati, Ohio, Swapalease.com is the world’s largest automotive lease marketplace and the pioneer in facilitating lease transfers online. For more information about Swapalease.com or how to exit your lease early, call 866-SWAPNOW or visit www.swapalease.com.