Who knew that details of an automaker’s lease program and transfer policies could have a significant impact on brand retention? And online car lease website LeaseTrader.com has the stats to prove it.
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Three main areas – lease program conditions, time to transfer and customer service – have become important aspects in the brand retention of several car companies, including General Motors Company (GM), Ford Motor company (NYSE: F) and Chrysler.
The American Big-3 are not alone, though. Even Toyota Motors (ADR: TM) and others like Honda, Nissan, Kia, etc are affected as well.
According to the latest news release by on-line website, LeaseTrader.com , domestic brands (Ford, GM, Chrysler) have all become stronger within the lease marketplace and brand retention levels have risen due to its lease programs and policies. In addition to making better cars compared with just five years ago, domestic vehicle customers say it’s no longer a hassle to make a transfer because of friendlier and improved customer service towards leasing, and time-to-transfer rates have shortened over the years.
European luxury brands such as BMW and Mercedes-Benz have traditionally received top marks in these areas and continue to do so today. Japanese brands, however, scored the lowest and it shows in brand retention levels according to LeaseTrader.com members.
"Companies with friendlier lease transfer policies are rewarded with high retention rates on LeaseTrader.com," said Sergio Stiberman, CEO and founder of LeaseTrader.com. "Flexibility and adapting to customer needs are very key in leasing today and customers will stick with a brand simply because its policies allow drivers to exercise their right to transfer on their own terms."
As an example of how a lease program can impact brand retention, Chrysler Group vehicles (Chrysler, Jeep, Dodge) today are leased under Ally Financial, which has a much more favorable lease program compared with its previous lease finance company - Chrysler Financial, according to LeaseTrader.com customers. The time-to-transfer rate has shrunk down from 75.5 to 19.3 days, its customer service has improved and drivers are now released from their contract during transfer. While this is a marked improvement, BMW’s lease transfer program occurs in just three days – a leading reason why it scores the highest among customers.
Japanese brands and lease companies don’t have similar policies and their brand retention figures within the LeaseTrader.com market are much lower. What’s more, lease-heavy brands like Jaguar and Land Rover, which are now leased through Chase Automotive Finance, also scored low retention marks because of similar unfriendly lease policies according to LeaseTrader.com users.
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According to the list, the top percentage brand retentions over 60% number 6 out of 23 brands, and include the following: BMW, Mercedes-Benz, Ford, Cadillac, Buick and Chevy. Chrysler just missed the TN chosen top level with 58%.
The bottom of the list are all surprisingly Asian, which seems ironic because it’s just the opposite of perceived quality. So, does that mean lease policy needs to be taken into account when judging a brand’s quality of ownership?
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LeaseTrader.com, the most recognized name in car leasing, easily and affordably matches car shoppers with individuals looking to escape their auto lease. For more information, visit www.LeaseTrader.com
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