Auto leasing marketing strategies such as targeting a specific group have become more important, as the number of consumer and commercial vehicle leases have increased.
Car leasing has become a very popular option, since more new vehicles were leased in the first six months of this year than the first six months of any year ever. Seniors and millennials are the biggest contributors to the leasing movement because they view leasing as a smart way to get a new car.
As the leasing model increases in popularity, auto manufacturers and dealers use new tactics for honing in on high-value, high-converting demographics. Some strategies aim to push forward the idea of a lease being parallel to a new vehicle purchase, whereas others embrace the unique qualities of the leasing segment. Both have one goal: ensure that people lease more cars.
Auto Leasing Hits Mainstream
Without a doubt, the nature of auto leasing has changed from being the pathway to the luxury-vehicle market to the road that leads to the mainstream car market. Most of the reason for this shift lies in the low monthly payment appeal. Lease payments are usually 23% cheaper than finance payments. Also, a leasing period of 36 months can be appealing to car shoppers compared to an auto loan that could have a loan period that is twice as long. Buyers love these benefits, and dealers love how lease customers tend to be brand and dealership loyal.
Car manufacturers have begun to target consumer leases alongside sales with marketing promotions. As an example, the electric vehicle segment has seen a rise in campaigns like Nissan’s “No Charge to Charge” promotion for the Leaf, the world’s best-selling electric car. The program offers free public charging for two years regardless of whether the owner purchased or leased the car.
At the same time, manufacturers have begun to think more deliberately about who they target when considering leasing versus buying customers. Nissan North America sales and marketing executive Fred Diaz notes how combining first- and third-party data allows the company to target precise groups, including those whose lease is set to end. By considering the characteristics of a certain demographic, the company’s marketing program may end up not displaying a lease rate on its website to that particular audience.
Commercial Auto Leasing Marketing Rises
Commercial fleet leases provide a huge boost in auto leasing while increasing brand awareness and targeting a specific crowd. For example, in the U.K., Nissan has partnered with Uber to provide the ride-sharing company with 20 Leafs as part of a trial program, marking the first time that all-electric cars have been an option via the Uber app in London. The Japanese brand also allows Uber drivers to participate in their special three-year leasing program.
Put together, the trend of increasing commercial and consumer leases could signal a shift away from traditional vehicle ownership schemes to a service-type model with monthly payments. As a result, more manufacturers may end up rethinking the way they target certain shoppers and sell vehicles in the near future as leasing moves closer to becoming the norm.