Auto Marketing

More Baby Boomers Lease Cars Today

David Walker, LeaseTrader.com — Mon, 09 May 2011 15:49:35 GMT

More Baby Boomers Lease Cars Today

When baby boomers were driving their first and second cars, the world was a different place when it came time to shop for a car. Today, the major decision is whether to lease or purchase a vehicle, and in a typical economy leasing now accounts for roughly 20 percent of all vehicle sales. But when boomers started shopping for cars in the 60s and 70s, they did what their parents and grand parents did – they financed their vehicles and drove them for 10 years or longer.

Even after leasing became popular in the 1980s and 90s, most boomers continued to finance their vehicles. The advice their parents and grand parents offered stuck with them and it continued to pave the way during car shopping outings.

But over the last decade, more boomers have started to lease a car. At the beginning of the 2000s, leasing was considered to be for the younger generation. Car leasing is different than financing, and the fundamental reasons are why boomers’ parents and grand parents didn’t jump in at first. It represents change every few years. It represents the desire to always have the latest and greatest. And with a focus on low, monthly payments, it also represents a different way to budget for a vehicle.

LeaseTrader.com has noticed the shift in preference, too. In 2000, only 15 percent of its customers were boomers or older, with the bulk of customers ranging in age from 28-35. Today, boomer representation (currently age 50 through 65) is closer to 48 percent of all LeaseTrader.com customers.

“Even though boomers have grown up with leasing, it wasn’t popular with their parents,” said Michelle Krebs, senior automotive analyst for automotive advice website Edmunds.com. “But boomers have gotten used to the thought of always paying for something, as opposed to financing a car and driving for several years with no payment.”

Minnesota resident Joe Faulkner is a baby boomer and proud to have carried the title since birth. Like many other boomers, Joe is now closing in on retirement and is concerned about the state of the economy since the recent recession took a bite out of his 401k and other savings. The economy is just one of several reasons why Joe drove a financed car 10 years ago. But he leases one today and enjoys his BMW 3 Series lease that comes with a low monthly payment. For Joe, the desire to switch took place when dealers started offering payment plans that fit his budget for the type of car he wants to drive.

“Joe represents a large population who now want to drive a nice car but pay as little as possible for it each month,” said Sergio Stiberman, CEO and founder of LeaseTrader.com. “More than any other age group or demographic, boomers have been the biggest growth segment for LeaseTrader.com over the last ten years because they’ve fallen in love with having more car for their money and experiencing a different car every few years.”

Another reason for growth in this age group can be explained in the explosion in small business and entrepreneurs. Especially in the wake of the largest recession since the Great Depression, many people who lost their jobs have gone out on their own and started their own business. Business owners enjoy tax benefits when using their vehicle leases for business, according to U.S tax laws.

“Many baby boomers are business owners and entrepreneurs who specifically lease their vehicle for the tax write-off,” added Krebs.

Gender differences have occurred as well. Women boomers have actually outpaced men, making up 52 percent of boomer growth in the LeaseTrader.com marketplace during the last ten years. From 2000 through 2007, men held a slight advantage, but from 2007 through 2010 more women than men were active in the marketplace, especially in high-lease regions such as California and the Northeast. LeaseTrader.com experts believe the recession may have played a role since much of the job loss during this time affected men, limiting their spending power. As a result, it is believed that women had less credit problems, further reducing any financial barriers to lease.

“Gender differences in leasing have been more of a reality in the last few years in our marketplace,” Added Stiberman. “During the last few years we’ve seen women become a larger part of certain leasing demographics on LeaseTrader.com, and boomers are no different.”

Even the type of cars boomers lease has changed over the years. Ten years ago 95 percent of boomers on LeaseTrader.com fell into the luxury category because of their spending power. Today, however, boomers are leasing a more diverse lineup of vehicles on LeaseTrader.com, including everything from compact cars (13%) to SUVs (17%) and even hybrid vehicles (11%). The luxury category is still the largest at 43 percent, but has dropped significantly from 2000 rates.

“Boomers today aren't confined to one vehicle segment because the boomer population isn't one-dimensional,” Krebs added. “Carmakers today have done a great job making small and hybrid cars that offer all the creature comforts boomers would want in a car, in addition to the fuel mileage benefits.”

Al Kernek is CEO of Pacifica Endeavors and he studies baby boomer trends. He believes more boomers choose to lease today because leasing appeals to both ends of the wealth spectrum.

“For those boomers who have a lot of wealth, they like the thought of having a different car every couple of years so they can stay ahead of the Joneses,” he said. “But there’s plenty of post-recession boomers who are still feeling the effects of a struggling economy. Boomers in this category believe a low monthly lease payment is a great way to satisfy a monthly fixed budget that has been pinched more than ever.”

Flexibility also comes into play for boomers and car leasing. Boomers with annual incomes of $150,000 or greater have the ability to drive a different car more frequently because of their spending power. LeaseTrader.com’s Lease Transfer program allows car lease drivers the ability to escape a lease contract before it expires. And more so than any other demographic, boomers with wealth today are the fastest to list their vehicle for transfer, averaging just 14 months of drive time before listing to escape their lease contract early.

For more information on car lease transfer, visit www.LeaseTrader.com.

Made In The USA Car Deals on July 4th

John Sternal, LeaseTrader.com — Wed, 30 Jun 2010 15:28:29 GMT

Made In The USA Car Deals on July 4^th

Looking for a hot deal this July 4^th weekend from your local car dealer? July 4^th is Independence Day, which means get ready to fire up that grill and gulp down some lemonade – or perhaps a different favorite beverage. It’s the annual summer holiday that celebrates all things hot and steamy, including the pool, good food and of course the heat.

But don’t forget to go car shopping, either, because as we all know, July 4^th is also all about car deals and blowout sales. But hold on there, Patriot, because there’s nothing more un-Patriotic than buying or leasing a new car on July 4^th that isn’t made in the USA. In fact, it’s almost a crime to Lease Specials a foreign car during the July 4^th weekend. Ok that’s taking it a bit too far, but you know what we mean.

Just in case you ARE looking for a ‘Made in the USA’ deal this weekend, here are some you may want to check out, compiled by our friends over at Consumer Reports:

2010 Acura TL priced at $35,105 with an invoice price of $32,673
2010 Ford Expedition Eddie Bauer priced at $46,470 with an invoice price of $43,253
2010 Lincoln Navigator priced at $57,850 with an invoice price of $53,230
2010 Mercury Mariner Hybrid priced at $31,855 with an invoice price of $29,578

The even better news is that you can swing by LeaseTrader.com and look for a similar Lease Specials with an even better price. Keep in mind that at LeaseTrader.com there is no down payment and much shorter Lease Specials terms than at the dealer. Plus, with LeaseTrader.com’s Lease Specials Transfer program, if you get bored with the vehicle after several months you can trade it away. There’s no getting locked into a Lease Specials contract.

Happy Fourth of July, America! Enjoy your car shopping.

Ram brand starts heavy-duty marketing in U.S. with Sam Elliott.

David Walker, LeaseTrader.com — Thu, 25 Mar 2010 14:47:37 GMT

Ram brand starts heavy-duty marketing in U.S. with Sam Elliott.

DETROIT -- The Ram truck brand is launching its first full-scale advertising and marketing campaign for the 2010 Ram Heavy Duty pickup.

The new campaign is part of Chrysler Group's strategy to separate Ram from the Dodge brand.

The campaign will emphasize the American virtues of the Ram HD and its can-do capabilities. The ads feature prominently the HD's designation as the Motor Trend magazine Truck of the Year.

The campaign was created by The Richards Group, a Dallas advertising agency.

Television commercials will feature the deep voice of character actor Sam Elliott, who has been in a number of cowboy movies and Gettysburg.

Said Fred Diaz, CEO of the Ram brand: “The reasoning behind the separation between the Ram and Dodge brands is starting to resonate. There's a distinct separation between what Dodge means and what Ram means.”

Regional events

The Ram marketing campaign will combine ads that feature the truck's image along with the information about product attributes that dealers like, said Olivier Francois, Chrysler's head of marketing.

The Ram also will be appearing at more than 30 regional events this spring and summer as part of a campaign to connect with customers.

Diaz, who is also Chrysler Group's lead sales executive, said the company was committed to backing the truck with plenty of marketing muscle.

“Ram accounts for nearly a third of our shipments” and 30 percent of revenues, he said. “It is a mainstay of this corporation, and we will not back down.”

Diaz declined to say how much Chrysler will spend on the Ram campaign, but he said the company will focus more marketing resources on advertising for all vehicles. Chrysler is trying to shed its reputation as an incentive-driven, bargain-basement carmaker.

“Our focus is to spend a lot more on advertising than on incentives,” Diaz said. “We'll spend the lion's share on media and advertising and a minimum on incentives.”

Sam Elliott with his deep voice will be featured in the Ram television commercials