Swapalease.com is more than just an advocate of lease transfer. The company is also a strong advocate of leasing. Therefore, Swapalease.com is challenging many of the points made by Consumer Reports in a recent lease versus loan comparison column, “Buying vs. leasing basics for cars”, published earlier this month.

“It was disappointing to see the details of the comparisons made by Consumer Reports,” said Scot Hall, Executive Vice President of Swapalease.com. “It appears that Consumer Reports is forcing a highly unlikely mathematical car shopping scenario that comes across as anti-leasing. Leasing is nothing more than an alternate form of financing, and one that has become extremely popular again since the recession.”

--There are several instances where Consumer Reports appears to be taking a negative position against leasing as an alternative method of financing. More specifically, the publication even infers that dealers today try to “complicate” the lease deal through their ability to offer attractive deals to the consumer. 

--The publication addresses vehicle lease options, with specific mention of early termination, without explaining to the reader that in many instances lessees may transfer out of their lease contract, an effective option Swapalease.com has employed for tens of thousands of drivers nationwide.

--Regarding future value, the publication fails to mention that drivers at the end of their lease term may be in a position of equity with their vehicle, an instance that has been more prevalent in recent history on certain segments of cars and trucks.

--Regarding excessive wear and tear, Swapalease.com feels Consumer Reports fails to mention the fact that drivers with loans are susceptible to heavier maintenance bills, particularly as finance terms become longer and as high as 84 months for today’s car shoppers.

--Swapalease.com also feels Consumer Reports is illustrating a 36-month “loan versus lease” scenario that is financially unrealistic for the vast majority of drivers. Very few, if any, car shoppers plan to finance a 36-month loan with a payment of $1,000 monthly. Additionally, Swapalease.com disagrees with Consumer Reports’ assessment that interest rates are “much higher for a lease because you’re paying back the cost of a leased car more slowly, $500 a month compared to $1,000 with a loan.” Swapalease.com conducted its own lease versus loan scenario recently where it compared a more realistic 72-month window since that has become a more popular loan term.

--Swapalease.com is also not clear why Consumer Reports is addressing resale values in the article. Resale values of a lease at the end of term have no impact on lessees who simply return the lease to the dealer. This is an issue the industry is constantly monitoring, yet has no impact on the financial status of someone considering a lease.

Swapalease.com has always respected the education offered by Consumer Reports, yet it feels compelled to set the record straight regarding true lease versus loan scenarios. Leasing is not for everyone, but it’s important that car shoppers are equipped with as much information as possible to make the right decision.