LeaseTrader.com: More Parents Using Kids As A Co-Signer

by News Guy on May 14, 2010

Older Consumers with Low Credit Now Rely on Children When Shopping for a Car Lease

MIAMI – (May 4, 2010) – Are more parents using their children’s higher credit status to get a car? LeaseTrader.com, a nationwide car leasing marketplace, reports a 28.9 percent increase over the last two years in the number of parents asking their children to co-sign for them when shopping for a car lease.

Everything from housing foreclosures to a still-high unemployment rate has continued to pinch the health of consumer credit. While children have traditionally turned to their parents for help, the opposite trend is taking place today with consumers who’ve damaged their credit and are unable to lease a vehicle. In places with large car leasing activity, such as Southern California and Florida, high foreclosure rates are still plaguing the region.

Since 2008, an increase of 28.9 percent of middle-age parents has asked their children to be a co-signer on a LeaseTrader.com car lease.

“Each day people find a way to cope with the effects of the housing situation and recession that damaged their credit status,” said Sergio Stiberman, CEO and founder of LeaseTrader.com. “People can afford to take over the lease payment but have issues qualifying for credit. Credit is still the most important aspect when getting a car lease, so many of these customers have been turning to their children for help.”

On average, people that fall into this category have taken over a lease payment less than $399 per month with less than 18 months remaining on the contract. No down payment and very short lease terms are the two most significant reasons why they use the LeaseTrader.com lease swap marketplace. LeaseTrader.com is aware of no situations where the parent had problems making the payment.

About LeaseTrader.com

The most recognized name in car leasing, LeaseTrader.com easily and affordably matches car shoppers with individuals looking to escape their auto lease. Privately held and founded in 1998, LeaseTrader.com is headquartered in Miami.

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