Capturing Equity at the end of a Car Lease
Zander Cook, Co-Founder & Chief Operating Officer, Lease End joined Grayson Brulte on The Road to Autonomy podcast to discuss how consumers can capture equity at the end of their car lease.
The conversation begins with Zander sharing his insights into what he is currently seeing in the leasing market. Putting this into context, the average price of a new vehicle has risen more than $10,000 since the start of the pandemic to $47,920 in January 2023, creating the opportunity for more leases.
To this point it has been a little counterintuitive, actually leasing had its worst year as a percentage of new vehicle sales in decades last year.
– Zander Cook
One of the factors that drove the decrease in new lease originations was the rising interest rate environment. Even with excess cash from the covid stimulus, new lease originations stumbled while the market for flipping electric vehicles such as at the Tesla Model 3, Model Y and the Ford Mach-E only grew. Now that the covid stimulus has dissipated, the market for new lease originations is beginning to show signs of rebounding.
With a shortage of new vehicles due to the semiconductor shortage and historically high used car prices, consumers had equity in their leased vehicles when the leases matured. This scenario is not common and was driven partly by geopolitics and a vulnerable supply chain.
Lessees of Honda vehicles historically tend to have the highest average equity as the vehicles hold their equity. Could this change as more electric vehicles come online and consumers choose to lease EVs? If it does change, how will the battery be valued?
For those individuals lucky enough to have equity in their vehicle at the end of a lease, their options to tap into the equity are traditionally limited. This is where Lease End comes into the picture. Lease End was built to streamline the buyout process at the end of a lease.
Our entire business is streamlining the lease buyout process.
– Zander Cook
By streamlining the process, Lease End is saving consumers time and money. In as quick as 25 minutes, consumers can be on their way as Lease End handles all of the logistics and financing. Could this become the future of ending a lease? Perhaps, but consumers will have to learn more about their options to end a lease.
In my opinion the biggest thing there is going control back to the consumer. Right now most consumers think they do not have any other option besides going into a dealership and dealing with the dealership and doing what the dealership tells them to do. That’s not the case, that’s why Lease End was founded.
– Zander Cook
Wrapping up the conversation, Zander shares his vision for the future of leasing.
Recorded on Thursday, February 23, 2023
