While the engine behind the exceptional growth in new car sales is a hotly debated topic, leasing is proving to be an undeniable catalyst behind this year’s impressive new car sales numbers.
Through June of this year, leasing accounted for 25.7 percent of new car sales, versus 22.2 percent in 2012. A decade ago, that number stood at just 17.5 percent.
Leasing saw a big jump in 2010, up to 21.3 percent of new car transactions, a nearly 5 percent rise compared to the prior year. Since 2010, leasing has been on a steady rise. One possible factor for this was that GM and Chrysler resumed leasing in late 2009, with the full effects of this becoming clear in 2010.
On the manufacturer side, OEMs are beginning to peg residuals at a higher number so that lower lease payments are made available for consumers.Read Article