• Feb 20th 2014 at 5:00AM
  • 15
American cars are being exported after lease terms are ... American cars are being exported after lease terms are up (AP).
A growing number of American car leases are being taken over for the purpose of being shipped overseas at the end of the term, according to Swapalease.com. This is happening particularly because fewer lessees and dealers plan to keep the leases because of the changing equity position.

Pent up demand in Europe has been pushing up local car sales. In order to keep up with demand, Europeans are importing cars that are coming off of leases in America. The practice has been popular in recent years with brands such as Honda and Ford.

According to Swapalease.com, the exporting practice is currently on the rise with entry-level luxury cars within brands such as BMW, Mercedes-Benz, Lexus and Land Rover, as well as with domestic brands such as Ford and Chevrolet, which are popular in overseas markets.

"As evidenced by the growing U.S.-produced inventory being shipped elsewhere, the North American auto industry is positioning itself to participate in the broader global competitive landscape," said Scot Hall, Executive Vice President of Swapalease.com. "Increasing demand across the oceans and more domestic supply could mean this activity continues to expand in the near term."

The top five countries that are importing leased cars for the purpose of selling are France, Spain, Italy, Sweden and China. If you're turning in a lease of a car that is popular abroad, it's quite possible that the car will ultimately end up in one of those foreign markets.

What this means for you

There are a couple of ways that this demand for American cars overseas can affect you as a consumer. The first is that it may allow you to get out of a lease quicker, since dealers are chomping at the bit to send cars abroad.

"Assuming that this overseas activity continues to grow, this will ultimately make it easier for people to do [lease] transfers...," Hall explained. "As more of these leases are taken over and then shipped overseas, that will increase the demand for these leases..., benefitting anyone looking to escape their lease."

It also also means that it could end up being cheaper for consumers to lease.

"Because these leases will end up in other countries, this will alleviate some of the volume pressure that will continue to build with lease expirations," said Hall. "As supply remains in check, so will residuals, which will ultimately help to keep monthly payments down on new leases written at the dealership."

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    • 1 Second Ago
  • 15 Comments
      Roger Mitchell
      • 1 Year Ago
      how much will a 1974 super beetle vw in excellent condition get me?
      carnut122
      • 1 Year Ago
      They forgot to mention that it will drive up used car prices.
      SNUFFY
      • 1 Year Ago
      Quit pissing on my leg and telling me it's raining....Your trying to tell me that cars produced in the United States like Chevy and Ford are appeling to Europe? What friking cars are produced in America? NONE is a good answer.....When Clinton signed the NAFTA agreement into law his first day in office our jobs went overseas and the border between Mexico and the US was opened to appease Mexico and we still deal with that crap...Thanks a lot you unsuspecting Democrats who vote for people that use your mantra to destroy our country....
        avdavy
        • 1 Year Ago
        @SNUFFY
        Get over it. Clinton won.
          amosesjr
          • 1 Year Ago
          @avdavy
          Yes, Clinton did win..........and that big eared little guy named Perot kept saying "you're going to hear this giant ******* sound.......and that sound will be jobs being sucked out of America." Guess it doesn't matter to you that he was right.
      Hey Baby WADUP?
      • 1 Year Ago
      One of the problems buying a used " new car" is that many were used as a rental pool 15,000 miles still under warranty. They may come with papers for oil changes etc.... BUT those 15k miles ~ THOSE are tractor miles NO Thanks ~ Already did that a couple of times.....
      soopershrink
      • 1 Year Ago
      I've been doing this domestically for years, that is buying a car that was previously leased, you can get a great luxury car such as a Lincoln Town Car with approximately 20,000 miles on it, for usually less than half price; why would you buy new and most cars will last 200,000 miles with few if any problems if you continue to have them properly serviced and you can now often work a deal to have free oil changes which is pretty much all the servicing needed for todays cars. Finally the rest of the world has caught on ( :
      sam1358
      • 6 Months Ago
      Cars in the USA are the cheapest in the world so whenever you like to send them overseas check :

       They can have a car shipped in 2 days via Air to Overseas so always check your car and never have the title inside:

      http://usgshipping.com/index.php/shipping-vehicle-overseas

      Terry and Mandy
      • 1 Year Ago
      And this will also drive up the price of used cars in the U.S. since there will be fewer previously leased cars for sale. Buying a previously leased car is one of the best car buys you can get. Let someone else eat the first 3 years of depreciation. You get a car with low mileage and a better price. Even better if you can buy out the lease privately.
      RED SKULL
      • 1 Year Ago
      I find that Consumer Reports talks out of both sides of their mouths when it comes to cars. I would not take their word for anything having to do with cars. I think it all depends on who "paid" their dues that quarter. Now if I were buying food processor I might read about it.
      sam1358
      • 6 Months Ago
      Cars in the USA are the cheapest in the world so whenever you like to send them overseas check :

       They can have a car shipped in 2 days via Air to Overseas so always check your car and never have the title inside:

      http://usgshipping.com/index.php/shipping-vehicle-overseas

      rovox25
      • 1 Year Ago
      Leasing: A BAD idea. You never pay it off. The smart way is to buy a nearly new used car (read: little old ladies - NOT dealers) and you will likely still have the original warranty in effect, buy an extended warranty on just the drive train (negotiable at any dealer - NO third party warranties), and with proper servicing, drive it for 150k or 200k miles. I have saved thousands of dollars doing it this way and you will still have an effective warranty for much of the time.
      MARTHA & PERRY
      • 1 Year Ago
      I guess Sweden wouldn't want my Volvo back.
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