One to Watch this Year: Used Car Leasing

Toy­ota is fac­ing the chal­lenge of off-lease vehi­cles com­ing back in large num­bers with a cre­ative approach – leas­ing them back to oth­er con­sumers as cer­ti­fied pre-owned. This is hap­pen­ing dur­ing a time when off-lease returns are expect­ed to dou­ble for the Toy­ota and Scion brands – and for a few oth­er automak­ers.

The nation­al roll­out that start­ed in the North­east in Jan­u­ary will con­tin­ue as indi­vid­ual regions get their deal­ers trained, said Tom DeLuise, nation­al Toy­ota cer­ti­fied and rent-a-car sales and oper­a­tions man­ag­er at Toy­ota Motor Sales U.S.A. Deal­er staff should be ready and trained by late April, dur­ing a time off-lease vehi­cles will start return­ing in big num­bers. Toy­ota expects that its cer­ti­fied sales will increase through this leased used cars by about 8% this year – to 400,000 units sold.

Man­heim has fore­cast­ed that about 3.1 mil­lion off-lease vehi­cles will return to the mar­ket in 2016, up near­ly 20% from almost 2.6 mil­lion in 2015. That pool of vehi­cles is expect­ed to grow to almost 3.6 mil­lion in 2017 and almost four mil­lion in 2018.

Used car leas­ing and CPO is usu­al­ly appeal­ing to car shop­pers. Buy­ers can typ­i­cal­ly reduce any­where from $40 to $125 per month from their month­ly pay­ments by opt­ing to lease used instead of new through fran­chised deal­ers.

Accord­ing to Edmunds, the fol­low­ing automak­ers’ cap­tives financed used car lease deals in 2015: Acu­ra, Audi, BMW, Chrysler (which includes financ­ing for vehi­cles from Dodge, Fiat, Jeep, Ram, and SRT), Fer­rari, Hon­da, Hyundai, Infini­ti, Kia, Lexus, Lin­coln, Maz­da, Mer­cedes-Benz, Mini, Mit­subishi, Nis­san, Porsche, Toy­ota, Volk­swa­gen, and Vol­vo.

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