Leasing Surge Dominates New-Car Market

PR Newswire

A surge in car leas­es is help­ing to boost the pop­u­lar­i­ty of new cars, accord­ing to Edmunds.com, based on analy­sis of vehi­cle reg­is­tra­tions from Polk.

Find out why Edmunds says leas­ing isn’t always the customer’s best choice.

A surge in car leas­es is help­ing to boost the pop­u­lar­i­ty of new cars, reports Edmunds.com, the pre­mier resource for car shop­ping and auto­mo­tive infor­ma­tion.

Accord­ing to an Edmunds.com analy­sis of vehi­cle reg­is­tra­tions from Polk, new cars account for about 29 per­cent of all sales in 2013 (through May). That puts the year on pace to top last year’s rate of 27.6 per­cent, which was the high­est pen­e­tra­tion of new cars in at least five years. Help­ing to dri­ve this trend toward new cars is a sus­tained push in leas­ing. Edmunds.com found that 25 per­cent of new cars sold this year were leased; the indus­try is on track to smash last year’s record lease pen­e­tra­tion rate of 22 per­cent.

“Lease offers have become more impor­tant to automak­ers’ and deal­ers’ sales strate­gies,” says Edmunds.com Sr. Ana­lyst Jes­si­ca Cald­well. “Lux­u­ry brands have for a long time relied on leas­ing to max­i­mize their sales vol­umes. Now main­stream brands are rid­ing that wave, draw­ing buy­ers with the promise of low­er month­ly pay­ments through leas­ing.”

A month­ly lease pay­ment is often less than the month­ly pay­ment on a new or even a used car. But if the dri­ver keeps the car for six years or more, a used-car pur­chase gen­er­al­ly works out to be less expen­sive than either leas­ing or buy­ing a new car.

If dri­vers hope to have a cou­ple years free of car pay­ments and they want a vehi­cle they can sell or offer as a trade-in some­day, then leas­ing is clear­ly not for them. They nev­er own the car, so they can’t do with it as they please.

But some­times, says Edmunds.com, a leased car can hold its val­ue espe­cial­ly well, mak­ing its resid­ual price a bar­gain to pay in order to take home the car at the end of the lease.

 

 

 



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