Leasing Rates Are Growing

As you know, my site LeaseGuide.com is about car leasing and helping consumers understand how leasing works. Because of my attention on leasing, I monitor key business indicators to see how automotive customers are acting regarding leasing.

The number of leased vehicles has been growing over the last year or so. This year about 3.4 million new leases will be written. Earlier, however, leasing had dropped off a bit due to car manufacturers' focus on 0% loans and other non-lease incentives. Now, manufacturers have gone back to less agressive sales techniques and interest in leasing has been revived.

Leasing has always been popular with "payment buyers" who are looking for low payments and low entry cost. Surprisingly, however, it is luxury and near-luxury vehicles that have the highest lease rates. Many people who lease luxury vehicles can easily afford to pay cash but prefer to conserve their cash for more productive purposes. Of course, there are other people who may not be wealthy but simply want to drive a luxury car with non-luxury payments.

Nearly half of all luxury vehicles are leased. Some brands such as Saab, Volvo, BMW, Mercedes, and Jaguar have lease rates as high as 70%.