Power Information Network Reports: SUV Leasing Rates Reach a Near Two-Year High

WESTLAKE VILLAGE, Calif.--Dec. 1, 20046, 2004--Leasing penetration rates for SUVs in November have nearly reached a two-year high, according to transaction data from the Power Information Network.

The SUV segment lease penetration in November was 23 percent -- up 17 percent compared with November 2003 -- the highest monthly rate in the past 21 months and the second highest in the past 29 months.

SUV leasing penetration in the fourth quarter of 2004 has been 22 percent (through November) -- up 10 percent compared to the first quarter of 2004. The SUV leasing increase is more than three times the industry increase of 3 percent.

The SUV super-segment is the only one of the eight super-segments to show an increase in leasing in the fourth quarter versus first quarter -- all the other super-segments declined. Within the SUV super-segment, three of the four SUV segments have shown an increase in lease penetration in the fourth quarter of 2004, led by the entry SUV segment, which is up 46 percent. This rise is the largest of any segment in the industry, car or truck.

"SUV lease penetration rates have been strong enough to boost lease penetration rates for the entire industry," said Tom Libby, senior director of industry analysis at the Power Information Network. "Leasing is becoming more popular as interest rates climb and financing a new vehicle over four, five or six years becomes more expensive. Also, values of used vehicles recently have been rising, raising forecasted retained values and lowering monthly lease payments."

New-vehicle leasing penetration climbed to 16.4 percent in November -- the highest level since March of 2004 and 12 percent higher than in November of 2003. November's leasing results were also the second highest monthly rate since March of 2003.

ABOUT POWER INFORMATION NETWORK (PIN)

PIN's automotive solutions are based on the collection and analysis of daily new- and used-vehicle retail transaction information from automotive franchises. More than 250 details from individual new-vehicle purchase transactions are aggregated, cleansed and analyzed to help dealers, manufacturers, and financial institutions better align sales, marketing and product distribution strategies. PIN's industry-leading automotive solutions incorporate consumer demand and sales information to improve results in product planning, marketing, sales, and vehicle production and distribution processes for its customers including pricing, revenue management, incentives optimization, and vehicle remarketing. www.powerinfonet.com. Media e-mail contact: john.tews@powerinfonet.com or michael.greywitt@powerinfonet.com.