SANTA BARBARA, Calif., March 3, 2011 /PRNewswire/ -- ALG, a subsidiary of DealerTrack Holdings, Inc. (Nasdaq: TRAK) and the industry benchmark for residual values and depreciation data, today announced that it expects a significant resurgence in the automobile leasing market in 2011 that will continue through 2015. The luxury market is predicted to lead the charge with a lease penetration rate of nearly 43 percent by 2012, while lease penetration in the mainstream market will increase to 17.5 percent over the next two years.
Numerous brands are expected to capitalize on this leasing resurgence, based on the ALG 2011 March/April edition and current high residual values forecasts, which allows them to offer highly competitive monthly lease payments. The luxury brands with the highest residual values ranked from one to five are: 1. Land Rover, 2. Infiniti, 3. Acura, 4. Audi and 5. Lexus. The mainstream brands with the highest residual values ranked from one to five are: 1. Mini, 2. Subaru, 3. Mazda, 4. Honda and 5. Hyundai.
As a result of their improved residual values over the past year, Land Rover is expected to see the biggest gain in leasing in 2011 in the luxury brand category, while in the mainstream brand segment, Hyundai is forecasted to realize the biggest gain in lease deals in the coming years. The forecast also found that the residual gap between brands continues to shrink, indicating an increasingly more competitive leasing landscape for both the luxury and mainstream markets.
"What we expect to see for the next several years is a very positive environment for leasing due to low used vehicle supply resulting in stronger used vehicle values, historically low interest rates and an easing of credit requirements as the overall economic recovery begins to take hold," said Eric Lyman, director, Residual Value Solutions for ALG. "As a result, leasing is emerging as an excellent option for dealers looking to move inventory and for buyers eager to get into new vehicles at competitive prices."
About ALG (www.alg.com)
Based in Santa Barbara, California, ALG is a leading provider of data and consulting services to the automotive industry. ALG publishes the "Automotive Lease Guide" – the standard for residual value projections in North America, and has been forecasting automotive residual values for over 45 years in both the U.S. and Canadian markets. ALG is a company of DealerTrack Holdings, Inc. (Nasdaq: TRAK).
About DealerTrack (www.dealertrack.com/)
DealerTrack's intuitive and high-value software solutions and services enhance efficiency and profitability for all major segments of the retail automotive industry, including dealers, lenders, OEMs, agents and aftermarket providers. The Company, whose solution set for dealers is the industry's most comprehensive, operates the largest online credit application network in the United States, connecting approximately 17,000 dealers with more than 950 lenders. DealerTrack's Dealer Management System (DMS) provides dealers with easy-to-use tools and real-time data access to enhance their efficiency, while DealerTrack AAX delivers the inventory management tools and services needed to accelerate used-vehicle turn rate and help increase profits for dealers. The Company's Sales and F&I solutions allow dealers to streamline the entire sales process as they structure deals from a single integrated platform, while also giving dealerships the ability to leverage vehicle registration and titling services through DealerTrack. Its Compliance Solution helps dealers meet legal and regulatory requirements and protect their assets. For lenders, DealerTrack's Processing Solutions offers services including titling, collateral management, and digital document services. DealerTrack's family of companies also includes data and consulting service providers ALG and Chrome Systems. For more information, visit www.dealertrack.com.
Safe Harbor for Forward-Looking and Cautionary Statements
Statements in this press release regarding the performance of the U.S. auto leasing market and any conclusions or statements based thereon, and all other statements in this release other than the recitation of historical facts are forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995). These statements involve a number of risks, uncertainties and other factors that could cause actual results, performance or achievements of DealerTrack to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements.
Factors that might cause such a difference include the accuracy of ALG's forecast, ALG's ability to interpret and predict trends and other risks listed in our reports filed with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K for the year ended December 31, 2010. These filings can be found on DealerTrack's website at www.dealertrack.com and the SEC's website at www.sec.gov. Forward-looking statements included herein speak only as of the date hereof and DealerTrack disclaims any obligation to revise or update such statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events or circumstances.
SOURCE DealerTrack Holdings, Inc.