We are familiar with the traditional “reading, ‘riting and ‘rithmetic” foundation of our educational system. And if you have pursued learning to the college level you know the cost is astronomical. I found a recent report from swapalease.com to be very insightful. In analyzing the effect of student loans, it stated that this specific debt item on a consumer’s credit report was at the heart of a 9% dip in lease approvals (from 78% in 2013 to 69% for this last year).
The article quoted senior officers of Equifax who added this volatile situation may be with the automotive industry for a while. With their estimate of non-mortgage consumer debt at $3.1 trillion, student loans have grown from approximately 20% to a “whopping” 37% of this amount. The majority of student debt is found in the under-35 age group, who also view leasing as a popular way of getting a new vehicle.
What are the 3 L’s this situation is creating? “Leasing, loans and lookout!” With nearly 30% off all new-vehicle sales representing leases, make sure you maintain a broad reach in your marketing plan in terms of demographics. It’s good to reach the younger market, but always be on the lookout for qualified buyers of all ages – those who have the higher degree of education without the burden of debt.