Black Book announces its latest white paper from the company’s Lender Solutions division, titled “Strategies To Help Maintain Profitable Leases In Your Portfolio”. Available by clicking here, the white paper discusses the possible conflicting market pressures that may temper the increase in leasing activity for lenders, and shows how collateral data can help shift portfolio strategies to maintain robust and profitable leases.

Leasing has been a critical part of the automotive industry, particularly since it helps to move inventory while keeping monthly payments low for consumers. Furthermore, a healthy lease market can feed current demand for the certified pre-owned market and create more frequent shopper appetite for cars and trucks. However, slowing auto sales may fuel a rise in incentives to keep car shoppers motivated, and a rise in Federal interest rates may threaten the ability for lenders to maximize profitability for leases in their portfolios.

The white paper produced by Black Book Lender Solutions offers distinct examples leveraging collateral data to show how certain vehicles may be candidates for longer lease terms as an alternative strategy to leveraging incentives. This shift can help lenders identify the right vehicles for longer terms by showing the collateral’s rate of depreciation, whereby certain vehicles will hold a stronger opportunity for off-lease remarket after 48 months rather than the more traditional 36-month lease term.

“Collateral data is used by lenders for a variety of portfolio strategies, and today is being used increasingly for setting the right opportunities in the growing lease market,” said Barrett Teague, Vice President of Lender Solutions for Black Book. 

To download the white paper, “Strategies To Help Maintain Profitable Leases In Your Portfolio”, click here.

Black Book® is best known in the automotive industry for providing timely, independent and accurate vehicle pricing information, and is available to industry-qualified users through online subscription products, mobile applications and licensing agreements. A leading provider since 1955, Black Book has continuously evolved to ensure that it achieves its goal of delivering mission-critical information to its customers, along with the insight necessary to successfully buy, sell, and lend. Black Book data is published daily by National Auto Research, a division of Hearst Business media, and the company maintains offices in Georgia, Florida, and Maryland as well as the Canadian Black Book in Toronto.