One-third of auto buyers used to lease a new vehicle - now that number is down to 19%. The reason? A Low inventory of cars has reduced the lease subsidies manufacturers have had to contribute to selling new vehicles. A cash purchase is a better money maker than leases, so they have backed off the lease deals. One of the unintended consequences of this in the future will be lower lease returns which usually ensure a high loyalty rate to the brand.
The gap between the purchase price and lease payment has narrowed. I.e., a Honda HR-V leases for $474, and the purchase price is $374 per month (Edmunds).
Wall Street Journal, 01302023, Page B1, Ryan Felton
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Auto Leasing losing ...
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One-third of auto buyers used to lease a new vehicle - now that number is down to 19%. The reason? A Low inventory of cars has reduced the lease subsidies manufacturers have had to contribute to selling new vehicles. A cash purchase is a better money maker than leases, so they have backed off the lease deals. One of the unintended consequences of this in the future will be lower lease returns which usually ensure a high loyalty rate to the brand.
The gap between the purchase price and lease payment has narrowed. I.e., a Honda HR-V leases for $474, and the purchase price is $374 per month (Edmunds).
Wall Street Journal, 01302023, Page B1, Ryan Felton
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