Bad news for us but makes sense from the manufacturer’s perspective. Selling the car doesn’t have the same residual vs market value discrepancy risk as leasing that could bite them in the ass 36 months later…
Interesting read but I think it’s slightly skewed as they are using national averages across all makes of cars. You see a higher rate of leasing with luxury cars then say a Toyota corolla. You see more people leasing in Miami and NY/NJ then you do in Denver and Houston. You look at a company like BMW that has something like an 80% lease rate verse Honda where everyone finances. BMW is making a go at it with higher MF and it appears there sales dropped for 2017. Luxury dealers will find a way to keep monthly payments low, if not with with MF then with incentives. Plus incentives are viewed differently on corporate taxes and bottom lines. Ultimately time will tell, but what I do know is that most everyone I know driving a luxury car leases and will continue to lease.
Not only it’s scewed becasue of the national everage but becasue they are (conveniently if I may say) not mentioning the percentage of the Credit Union loans compare to captives.
The full article can be found here
Experian article
If the manufacturers want to “sell” more cars, especially to the people that don’t “need” them, they are pretty much forced to promote leases one way or the other. With millennials and the shared economy the age of 2.28 cars per family is slowly eroding imo and it’s not just my opinion.
Industry is moving towards car-as-a-service for flat monthly fee including insurance and maintenance (and even detailing in the case of Porsche).
Reference: Volvo XC40
If anything, leasing is the forerunner of what’s to come.
It’s called subscription model
Thank you, overlord of auto industry lingo.
If the method of measurement is exactly the same, for each year, and the numbers went down, there is indeed a decrease.