Auto Leasing Rebounds From 2011 Through 2015
On March 3, 2011, Auto Lease Guide (ALG) announced that it expects a significant
resurgence in the automobile leasing market in 2011 that will continue through 2015. The luxury market is predicted to lead
the charge with a lease penetration rate of nearly 43 percent by 2012, while lease penetration in the mainstream market will
increase to 17.5 percent over the next two years.
Numerous brands are expected to capitalize on this leasing resurgence,
based on the ALG 2011 March/April edition and current high residual values forecasts, which allows them to offer highly competitive
monthly lease payments. The luxury brands with the highest residual values ranked from one to five are:
The mainstream brands with the highest residual
values ranked from one to five are:
As a result of their improved residual values over the past year, Land
Rover is expected to see the biggest gain in leasing in 2011 in the luxury brand category, while in the mainstream brand segment,
Hyundai is forecasted to realize the biggest gain in lease deals in the coming years. The forecast also found that the residual
gap between brands continues to shrink, indicating an increasingly more competitive leasing landscape for both the luxury
and mainstream markets.
"What we expect to see for the next several years is a very positive environment
for leasing due to low used vehicle supply resulting in stronger used vehicle values, historically low interest rates and
an easing of credit requirements as the overall economic recovery begins to take hold," said Eric Lyman, director, Residual
Value Solutions for ALG. "As a result, leasing is emerging as an excellent option for dealers looking to move inventory
and for buyers eager to get into new vehicles at competitive prices."
About ALG (www.alg.com)
Santa Barbara, California, ALG is a leading provider of data and consulting services to the automotive industry. ALG publishes
the "Automotive Lease Guide" - the standard for residual value projections in North America, and has been forecasting
automotive residual values for over 45 years in both the U.S. and Canadian markets. ALG is a company of DealerTrack Holdings,
Inc. (Nasdaq: TRAK).
Safe Harbor for Forward-Looking and Cautionary Statements
Statements in this press release
regarding the performance of the U.S. auto leasing market and any conclusions or statements based thereon, and all other statements
in this release other than the recitation of historical facts are forward-looking statements (as defined in the Private Securities
Litigation Reform Act of 1995). These statements involve a number of risks, uncertainties and other factors that could cause
actual results, performance or achievements of DealerTrack to be materially different from any future results, performance
or achievements expressed or implied by these forward-looking statements.
Factors that might cause such a difference
include the accuracy of ALG's forecast, ALG's ability to interpret and predict trends and other risks listed in our
reports filed with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K for the year ended
December 31, 2010. These filings can be found on DealerTrack's website at www.dealertrack.com and the SEC's website
at www.sec.gov. Forward-looking statements included herein speak only as of the date hereof and DealerTrack disclaims any
obligation to revise or update such statements to reflect events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events or circumstances.
SOURCE DealerTrack Holdings, Inc.