Swapalease.com Auto Lease Trends Report 2nd Quarter A snapshot of the auto lease industry

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1 Swapalease.com Auto Lease Trends Report 2nd Quarter 2018 A snapshot of the auto lease industry 1

2 About The Report Swapalease.com studies lease market trends and consumer insights each quarter. In order to gain these insights the company studies a variety of lease market data, and takes the pulse of consumer appetites for leasing by presenting surveys to more than 2,500 drivers across the U.S. The purpose of the report is to provide a deeper understanding to the industry on where U.S. auto lease activity is in the present market, and where it may be forecast to go in coming quarters. Headquartered in Cincinnati, Ohio, Swapalease.com is the world s largest automotive lease marketplace and the pioneer in facilitating lease transfers online. More specifically Swapalease.com matches individuals who want to get out of their lease with people who are looking for short-term lease agreements. Prospective buyers can search the listings for the exact vehicle they want, and then register for a nominal fee, allowing them to use Swapalease.com s safe online system to contact the prospective seller and close the deal. For more information about Swapalease.com or how to exit your lease early, call 866-SWAPNOW or visit 2

3 Auto Lease Activity in Q In the second quarter, 2018, leasing bounced back from a slower start to the year, where more dealers emphasized incentives for financing programs. However, as the year grew deeper into the second quarter, dealers began to again make attractive offers on leases. Brands such as Buick, Volkswagen, and Infiniti saw greater search traffic and interest from consumers in the Swapalease.com marketplace, according to second quarter search traffic data. Brands such as GMC, Lexus and Subaru saw their search traffic fall considerably. Swapalease.com expects lease levels to continue to bounce back as the year progresses, fueled by an automotive market that has been resilient so far this year held up by a continued strong American economy. 3

4 Q2 Searches by Brand Domestic European Asian Several brands saw searches up across the entire Swapalease.com marketplace. Much of this Q2 activity was most likely driven by consumers looking for lease deals on the secondary market. -1% -3% -4% 6% 3% 0% -3% -3% 6% 1% 4% -5% -1% -4% 9% 5% -15% -13% -13% *Compared to Q

5 Q2 Searches by Brand Domestic European Asian Compared to a year ago, brands such as Toyota, Infiniti, and Mercedes-Benz all saw increases from the previous year Q2. 11% 3% 2% 9% 10% 16% 29% 23% 12% 2% 6% 35% 29% 29% -7% -11% -3% -7% -11% *Compared to Q2 previous year 5

6 12% 11% 8% 8% 2% 2% 2% 1% 0% 0% 0% 0% 1% 1% 1% 1% 0% 0% 1% 1% 3% 3% 3% 2% 0% 1% 0% 0% 1% 1% 0% 0% 1% 1% 0% 0% 0% 0% % of Total Traffic Q1 18 Q2 18 During Q2, most brands saw similar search traffic share on the site from the previous quarter. BMW s share of search traffic fell slightly, even though it remains the top searched brand on the Swapalease.com marketplace. Several brands at 0% share have less than 1% visibility overall on the marketplace. 6

7 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Swapalease Q2 Lease Report Q2 Avg. Payment by Brand Americans paid an average of $ per month on their leases during the 2 nd quarter. Down slightly from $ in the 1 st quarter. a A CHEVY CHRYSLERCA D ILLAC RAM MB A UDI HONDA TOYOTA INFINITI S UBARU 7

8 Lease Term Trends 8

9 Q2 Lease Snapshot M-O-M Months Remaining Miles Remaining Incentives , ,617 $ $ Q Q Q Q Q Q Q2 Lease Trends The rising months remaining and falling miles remaining show that people are looking to escape their leases earlier, but also driving more. 9

10 Q2 Lease Snapshot (by gender) Months Remaining Miles Remaining Incentives ,113 25,810 $ $ Men Women Men Women Men Women Q2 Lease Trends Women continue to look to escape their leases earlier in the lease contract than men. However, men continue to offer higher incentives on their vehicles. 10

11 Q2 Lease Profiles WHAT THEY RE LEASING Acura Audi Ford Toyota BMW Women 67% 55% 60% 54% 58% 45% 46% 40% 42% 33% Hybrid Small Car Mid-Size Luxury Utility Men Women Toyota Lexus MB Ford BMW Men 11

12 Q2 Lease Profiles WHAT THEY RE PAYING 6% 4% 17% 19% 21% 27% 20% 17% 14% 11% 9% 10% 6% 7% 7% 6% Under $200 $200-$299 $300-$399 $400-$499 $500-$599 $600-$799 $800-$999 $ Q Q2 Average Payment Q2 vs. Q1 12

13 Brand Trends 13

14 Q2 Lease Profiles Number of Leases Per Household 36.9% 37.2% 36.9% 37.0% 18.0% 17.8% 6.0% 6.2% 1.8% 1.2% 1.0% 0.7% 0 Lease 1 Lease 2 Leases 3 Leases 4 Leases 5 or more 2018 Q Q2 Number of Leases Per Household 14

15 Q2 Lease Profiles What Type of Lease Are You Driving? 19.5% 23.7% 5.0% 5.8% 13.3% 12.3% 11.0% 11.6% 7.7% 4.7% 5.4% 5.1% 4.2% 3.5% Small Car Midsize Car Fullsize Car Spors Car SUV Crossover Truck 2018 Q Q2 Type of Lease in the Driveway 15

16 Q2 Lease Profiles Domestic Import Yes Not Sure No 68% 32% 50% 16% 34% Type of Vehicle You d Want to Lease Stay with the Same Brand? 16

17 Swapalease Q1 Lease Report 37.5% 35.0% 36.4% 34.4% 8.1% 11.5% 17.3% 15.0% 24.4% 24.8% 20.8% 17.1% Reasons For Change Q1 18 Q

18 Swapalease Q1 Lease Report Q Q2 Overall Confidence in the Economy Confidence in Economy Looking Ahead Confidence Level in Leasing A Vehicle Today Confidence in Leasing Versus a Year Ago Economy & Lease Confidence Indexes Q1 18 Q

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