Just when should you pull the trigger on a new lease? That’s the question that car leasing app Honcker is ready to answer. It has just added a new feature that enables potential lease customers the ability to see real-time, local lease pricing trends for each make and model.
“We are literally at the point of purchase, so we are the only company that can reliably offer this information,” said Nathan Hecht, founder and chief executive of New York-based Honcker. “The consumer benefit is that for the first time they can see the vehicle’s price history, and this will suggest the right time to lease.”
Lease payments can vary widely month-to-month
Honcker’s analysis of thousands of lease transactions shows that monthly lease payments can be volatile. Because lease prices can go up and down rapidly from month-to-month and even in the course of a month, understanding how monthly lease payments have tracked over time is an excellent tool in deciding when to sign up for a new lease. Hecht said that lease customers typically start thinking about a new lease 90 days before their current lease expires. That gives them a fairly broad window to choose a favorable monthly lease payment and accompanying lease deal, if they have the data to help them make the decision.
“A lot of components go into the lease payment,” Hecht said. “On the consumer side there is credit and credit score; on the OEM [car manufacturer] side there is the current inventory situation; for banks there is the current interest rates; and for the dealer there is the state of his business that dictates how much he might want to contribute to a lease deal.”
All this adds up to price changes that can be of benefit if the consumer can determine a favorable lease rate and get the deal. For individual dealers, it helps them decide if their offers are competitive and enables them to lower their prices if they are not.
The historical lease pricing trends data is displayed as a graph on each make/model search screen on the Hocker app. Over the course of time, some models show an upward trend. Others show lease prices are declining, and that is often the result of a manufacturer subsidy. These so-called “subvented leases” give carmakers the ability to put individual models “on sale” without lowering the manufacturers suggested retail price. (MSRP) For those unfamiliar with Honcker, it is an app that enables car shoppers to search for car leases without the necessity to visiting a dealership. On the app consumers seeking to buy a particular make-model will be presented with several vehicles that closely match their criteria. Importantly they will see the actual monthly payments that apply to their proposed deals calculated online in real time. Instead of viewing an advertised price that usually just starts the negotiation, prospective car-buyers will be able to choose from deals that are individualized to match their credit profile.
Honcker-affiliated dealers agree to honor and transact at the price and with the terms presented online, so consumers can complete a lease transaction in a few swipes. If desired, they can also have their car delivered the next day. Honcker now boasts an eight-state footprint of affiliated dealers with its strongest dealer representation in the Northeast and in California. For you prospective lessees out there who do not reside in Honcker’s eight-state sphere of influence, Hecht promises the company is rapidly expanding and is also adding dealerships and vehicle inventory in its current markets. The lease pricing trends feature makes the app even more useful.