Company-Issued Vehicle Use on the Rise
MIAMI – LeaseTrader.com has released data based on transactions in its online marketplace showing that individuals are getting rid of personal vehicles with leases because of company-issued vehicles. LeaseTrader.com’s marketplace showed a 5.3-percent increase in transactions due to company cars within a household, which comes on the heels of a 4.8-percent increase in February.
LeaseTrader.com cited the 8.8-percent national unemployment rate, which has fallen over the last few months due to a gain of 194,000 jobs in February and 216,000 jobs in March.
“On the surface, the jobs outlook is brightening which creates an environment for rising confidence among drivers and households,” said Sergio Stiberman, CEO and founder of LeaseTrader.com. “What’s more, the increase in jobs creates more company-issued vehicles, and in these cases people look to shed their personal car leases.”
Many of the personal vehicle lease transfers are taking place in states such as California, Texas, Florida and Michigan, which all showed growth in jobs during March, according to LeaseTrader.com. During the recession and much of the economic recovery, drivers would escape vehicle leases out of need. Since January, a growing percentage of drivers have been escaping to shop for a new vehicle lease deal at retail, or choosing to drive their company cars instead now that they have more confidence in keeping their jobs.