San Diego – LEAP Financial, a vehicle leasing company that serves consumers who have difficulty obtaining credit, quantified the benefits it provided to lenders and customers during the past twelve months ending March 31, 2012. During that period, estimated lender benefits from this program were just over $2.3 million. This reflects an average benefit of approximately $1,900 to the lender for each customer that settled with LEAP. LEAP estimated this number by modeling the lender’s reduction in expenses associated with the repossession process and the increased income earned from selling the vehicle to LEAP instead of selling it at auction.
In addition to lender benefits, LEAP also quantified consumer benefits. Over the past 12 months, 85% of customers had a lower payment with LEAP than with their prior lender. On average, customers received a $125 reduction in their monthly payment. Consumers chose to do business with LEAP for a variety of reasons, including payment savings and vehicle retention. LEAP offers lease programs for consumers who are facing repossession or bankruptcy, providing a possible alternative to losing their vehicle.
These figures illustrate the value of LEAP’s unique business model, which allows lenders to decrease losses on their defaulted auto loans while customers can keep their vehicle. This is an ideal tool for lenders that helps them resolve defaulted auto debt. LEAP purchases the vehicles which secure these defaulted auto loans from lenders at a price that is higher than lenders would otherwise receive at auction. LEAP then leases the vehicle back to the customer with terms they can afford, providing a benefit to everyone involved.
In commenting on the benefits LEAP offers, Tim Condon, CEO of LEAP Financial, explained, “LEAP’s role in the market is unique because we provide benefit for both lenders and consumers. In situations when a lender is unable or unwilling to modify the loan, LEAP can provide an alternative that allows the consumer keep their vehicle. Our lender partners are an important part of the LEAP transaction, and we encourage consumers to work with their lender throughout the process.”
For more information about LEAP and how it can benefit your business or clients, please contact Lindy Hood at: firstname.lastname@example.org.
About LEAP Financial
LEAP Auto Loans, Inc., doing business as LEAP Financial, is a vehicle leasing company headquartered in San Diego, CA, which serves consumers who have difficulty obtaining credit to either keep their current vehicle or get into another one. The company’s unique product enables consumers who are unable to qualify for traditional financing to lease a vehicle. Customers are sourced through referrals from business partners and direct-to-consumer marketing. Backed by Austin Ventures and staffed with experienced auto finance professionals, LEAP is currently operating in most states. Visit www.leapautoloans.com for more information.
About Austin Ventures
Austin Ventures (“AV”) has worked with talented entrepreneurs to build valuable companies for over twenty-five years. With $3.9 billion under management, AV is the most active venture capital and growth equity firm in Texas and one of the most established in the nation. Visitwww.austinventures.com for more information.