There were a number of factors contributing to lower lease volumes," explained Rob Mize, ACVL President, "including the expansion of the 0% retail installment programs and other similar manufacturer installment sale promotions, continued declines in residual values (causing higher monthly lease payments making leasing less competitive compared to financing), and fewer manufacturer subvented lease programs.
ACVL members also reported that their end-of-term residual losses decreased somewhat in 2003.
The ACVL survey highlights a number of areas in which bank and captive vehicle leasing programs differ.
A major part of our mission at ACVL is to provide consumers with the information they need to make informed decisions.
Exhibit 1: ACVL Vicarious Liability Lawsuits In New York, reveals the dilemma faced by ACVL member companies.
ACVL conducted the survey to collect definitive information on vicarious liability in New York for the New York legislature.
A few still maintain vicarious liability in limited circumstances (when the lessee does not have personal liability coverage, as required by all ACVL member lessors) and have capped it to modest amounts and manageable levels, e.
There were a number of factors contributing to lower lease volumes," explained Rob Mize, ACVL
President, "including the 0% manufacturer promotional loan finance rates and other very low interest rates, lower residual values (causing higher monthly payments), fewer manufacturer lease promotions, and the retraction of some bank lessor programs by withdrawing from some states and/or being more selective in approving lease applications.
For banks, the average term of 53 months indicates that the 60-month term has surpassed the 48-month term in popularity," said Jesse Bragg, President of ACVL.
Security deposits are also required less frequently than a few years ago, the ACVL survey showed.