All vehicle lessors should be aware that the current wording of the Cash for Clunkers Bill, H.R. 1550, does not provide any cash incentive to potential consumers or fleet lessees of light trucks who choose to lease their vehicle purchase.
The NVLA (National Vehicle Leasing Association) is working with the NADA (National Automobile Dealers' Association), TRALA (Truck Renting and Leasing Association) and the staff members of Representatives and Senators to ensure Congress is aware of the importance of the inclusion of leasing in the Bill.
The NVLA recently sent the following letter to the House Energy and Commerce Committee for consideration in the wording of the "Cash for Clunker" bill, H.R. 1550. We ask that you use similar wording (or simply cut and paste this letter) when writing your Representative:
Dear Sir or Madame:
Leasing has been an integral part of the automotive business for the past 40 years. Inherent to leasing is a short trade cycle. In fact, it is two to three years shorter than the average length of time an owner keeps a car. This helps put more new cars on the road, faster. It keeps the automotive industry moving. It creates more employment for more people, from the manufacturing level throughout the distribution network and after sales industry. The failure to include leasing in this important initiative will only serve to undermine this bill's potential impact. We need your help to re-word H.R. 1550 and include leasing in this important bill aimed at returning our Nation's economy to health.
A few facts about leasing:
1. Dealers are three times as likely to turn the vehicle over at lease end and put the lessee in a new car than they would be had the individual financed a car conventionally. This means a greater number of newer, more efficient, cleaner operating vehicles will be on our roads.
2. Lease returns provide the manufacturers cars they can sell back to their dealers through auctions at lease end.
3. These lease returns are sold to the highest bidding dealer, reconditioned and brought back to factory standards, are thus less polluting than a poorly maintained older vehicle, and then can be marketed as Certified Pre-Owned cars by the dealers.
4. Dealers need help in obtaining late model vehicles that can be certified. Rental fleets have curtailed their purchases lately and are holding cars in their fleet longer, giving the dealers less opportunity to remarket vehicles, provide meaningful employment for their employees who in turn help to keep the economy moving.
5. Finally, leasing provides lower payments. During difficult economic times where family budgets are constrained, leasing provides more people the option to upgrade their car to a new, more environmentally friendly, and less costly alternative to their current vehicle.
Please ensure that our voices are heard, and that leasing is added to H.R 1550. Let's help keep this country moving, together, and include every possible tool we can in an effort to ensure our stimulus efforts are the most effective they can be.
Originally posted on Automotive Fleet