This week’s guest blog post is contributed by Arianne Walker, Sr. Director, Automotive Industry Strategy, Oracle Data Cloud.
A record 3.6MM cars came off-lease this year, with an additional 4.1MM due off-lease in 2018 and 4.3MM in 2019, according to IHS Markit.
These figures represent almost one-third of the automotive retail market.
As these cars come off-lease, their drivers will be ready for their next car and probably looking for another lease.
Looking back, the lease market peaked in the fourth quarter of 2015, and although the lease market dropped slightly since the peak, it still represents almost 30 percent of the overall market, finds IHS Markit.
Lease penetration grew as vehicles became more expensive—leasing provides increasingly attractive options to afford non-luxury vehicles.
The demand for acquiring luxury vehicles is attributed to the desire for the latest technological features for safety and entertainment, which continue to push vehicle costs to all-time highs.
We anticipate that with the bloat of late-model used vehicles coming back to market, more competitive pricing in the used market also is likely to impact new vehicle market dynamics.
Now is the time to implement these two strategies to help you get the edge on lease competition this season.
In the increasingly competitive market, it’s more critical than ever to reach lease consumers at the right time.
Lease consumers come back to market on a markedly different cadence—typically every three years, instead of seven-plus years for new car buyers via financing or cash.
Getting in front of these audiences as they gear up to return to market is imperative. It’s vital to capture customer attention during that sweet spot—when they’re thinking about their next car and approaching that new leasing horizon.
This is your opportunity to go beyond messaging your own lease customers and reach out to those (previously) elusive leasing opportunities.
To reduce waste and increase efficiency, specifically for your lease campaigns, make sure you focus your targeting on the most qualified audiences: those most likely to lease. Then, ensure that your creative messaging hits the mark.
You can even narrow down across luxury versus non-luxury to help provide more precise opportunities for specific creative messaging.
For luxury vehicle campaigns, focus on those most likely to lease a luxury vehicle, and then incorporate messaging about the lease increasing the attainability of the luxurious options, top class care, and the most advanced technological features in the latest cars.
For non-luxury campaigns, focus on the best non-luxury lease audience. Then incorporate creative messaging that focuses on affordability and helps get the consumer into a great new vehicle with the latest in safety and entertainment features.
Additionally, consider targeting your audience for leasing messages. For example, help consumers step up into a higher level trim of a non-luxury vehicle or into an entry level trim for their first luxury vehicle. Provide specific step-up creative messaging for options consumers might not have thought of.
And, of course, this is a great opportunity to help focus your sales event marketing, specifically for leasing campaigns.
Action steps for automotive marketers
Our team at Oracle Data Cloud and IHS Markit have partnered to deliver in-market lease audiences for the first time. If you engage these audiences, which are three times more likely to lease in the next six months, you can bet on success.
Here are three categories that might be a good fit for you:
About Arianne Walker
Arianne leads automotive industry strategy at Oracle Data Cloud. As a thought leader and market voice, she helps automotive marketers discover and implement the best possible audience strategies and delivers data, insights, and perspective on broader auto industry initiatives that impact and influence the marketing and advertising strategies of automotive marketers.