Retail customers may be moving away from luxury vehicles and toward trucks and SUVs for their leases, according an analysis from Swapalease.com.
In the second quarter of 2018, approximately 22.8% of Swapalease’s users stated that the vehicle they currently drove would be classified as a luxury sports sedan, while 27.2% stated that they drove a truck or SUV.
Just two years ago, luxury sports sedans accounted for 27.5% of Swapalease’s users while trucks and SUVs accounted for 24%.
The Swapalease analysis also found that lessees are gaining more interest in shorter lease term lengths. During the second quarter of 2018, 54.1% of its users that it analyzed said their ideal term was for two years, compared to 50.1% who said the same in 2016.
For three-year leases, 42.8% said this term length was ideal for them in the second quarter of 2018, compared to 39.4% two years ago.
From an industry perspective, having shorter lease term lengths would mean that the used industry would have a larger supply of newer vehicles re-entering the market at a faster clip.