Recent data from Cox Automotive reveals that the average transaction price of a new vehicle in the U.S. in February was $48,763, around $12,000 more than it was five years ago. Some high-profile executives, like Toyota North America’s Head of Sales, Jack Hollis, believe average prices will exceed $50,000 in 2023. Additionally, interest rates have soared to an average of 6.07% to 10.27% according to Experian’s fourth quarter 2022 analysis.
These barriers to new car ownership leave the door wide open for the leasing market.
A new J.D. Power study suggests that vehicle lenders need to focus on customer retention to prevent additional losses in 2023.
According to Patrick Roosenburg, Director of Automotive Finance Intelligence at J.D. Power, “lenders need to take actions that create and maintain brand loyalty.” Roosenburg goes on to recommend that lenders time their outreach six to nine months before the lease ends—much before the leasee steps foot back into the dealership.
On the other hand, for a second year running, Ford Credit leads the general market segment in end-of-lease satisfaction with a score of 873. Second place is held by Toyota with 857, followed by a split for third place by Honda, and Hyundai of 855.
The results of the study are based on feedback from 2,513 mass market lease customers who had recently ended a car lease during the survey period, which was conducted between November 2022 and January 2023.