Monday, April 1, 2013

Is Auto Leasing Just A Trend Or Is It Here To Stay?

Here are some facts and a little knowledge of where automotive financial trends are taken us.
The average Automobile price tag or MSRP (Manufactures Suggested Retail Price) today is much higher than ever before. In 1989 any car over $12,500 was considered by the IRS to be a luxury automobile. A financed car at the selling price of $10,000 and an average interest rate of 10% , in that day and time, for a term of 48 mos. was $250 per month. With the ever growing price tag of new and pre-owned vehicles today. The average person financing a car at 7% interest can not afford to finance these high ticket items. And with inflation of the all mighty dollar surpassing the depreciation of these assets, they must and need to lease. The average price MSRP today is over $20,000++ with a 48mo term retail finance payment growing over $500 per month. It is stated throughout Industry and Economic articles, that nearly 50% of all cars today with a price tag of over $25,000 are leased and within the near future with the rising cost of technology to build bigger, better, faster and while trying to meet government and the economical needs of motorist, the price tags for automobiles will soar beyond our imagination.
In 1978 Mercedes Benz's new 450SL had a Window Sticker over $20,000 and the general public stood back in shock and said "who in their right mind will ever pay that much for a car"? Even today automobiles "Sticker Shock" people more than ever before. The new 2006 Mercedes Benz SL500 will have an average MSRP of $138,000. A new, fully loaded, Chevrolet Tahoe Z71 4x4 has an MSRP of over $50,000. That same truck cost $28,000 just a few years back. The price has almost doubled in less then a decade. The market for leasing in this State and across this County is most definitely here to stay.
Brad Austin Averitt
Owner and Senoir Account Manager
Best Auto Lease USA
a Division of TransWorld Leasing
Las Colinas, TX
Direct 469-831-3764
Toll Free 877-855-3273
Fax 972-575-8566

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