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RESEARCH SHOWS AUTOMOBILE LEASING HAS DOUBLED IN FIVE YEARS; NEW FORD CREDIT PROGRAM MAY CONVERT CASH BUYERS TO LEASING

 RESEARCH SHOWS AUTOMOBILE LEASING HAS DOUBLED IN FIVE YEARS;
 NEW FORD CREDIT PROGRAM MAY CONVERT CASH BUYERS TO LEASING
 DEARBORN, Mich., May 26 /PRNewswire/ -- In the past five years, the number of customers who lease a new car or truck has doubled, according to Arthur M. Spinella, director of automotive research at CNW Marketing/Research in Bandon, Ore.
 "The upsurge in leasing is driven both by consumers and by manufacturers. On the manufacturers' side, leasing provides an opportunity to reduce customer trade cycles to 24 to 46 months as opposed to five years. This results in more sales over the same period when compared to longer term purchases," Spinella said.
 "On the consumer side, people may choose to lease so they can drive a nicer car for about the same monthly payment they'd pay to finance a lesser equipped or lower model vehicle. Our research shows that 32-33 months is the preferred time for customers to turn in their vehicles," Spinella said. "Leasing customers also choose leasing because of its convenience."
 Now, Ford Motor Credit Company's new Red Carpet Lease Advance Payment Program offers customers the ability to lease a vehicle, and to make all of the payments in a single, lower up-front payment. It is designed to appeal to customers who traditionally would choose to pay cash.
 "This kind of lease offers good value," Spinella said. "If you're going to pay cash for a car or truck -- a depreciating asset -- it makes more sense to minimize the cash 'tied up' in that vehicle and invest the rest.
 "Our research with cash buyers indicates that 80 percent would support this type of leasing if it were offered to them."
 The Advance Payment Program is available through participating Ford and Lincoln-Mercury dealers.
 -0- 5/26/92
 /CONTACT: Jessica Hatchigan of Ford Motor Credit Company, 313-594-2527/
 (F) CO: Ford Motor Company; Ford Motor Credit Company ST: Michigan IN: AUT SU:


JB -- DE003 -- 3601 05/26/92 08:42 EDT
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Publication:PR Newswire
Date:May 26, 1992
Words:327
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