Number of leased vehicles reaches all-time high in H1
This is according to the latest Lease Market Report from Edmunds.com, suggesting that the automotive market could be on the verge of a fundamental shift in consumer mindset about the value of owning a new vehicle - particularly when the purchase has to be financed.
The Millennial generation is driving this change, with a higher rate of lease penetration than any other generation (34.2 percent), but the strongest growth has come from shoppers over the age of 75.
During the first six months of this year, more than 32 percent of cars sold to this age group were leased – a growth rate of 74 percent compared to five years ago when lease penetration this group was only 19 percent.
On average, monthly lease payments are 23 percent lower than monthly financing payments. The biggest difference between monthly lease and financing payments can be found with compact cars (30 percent), full-size pickup trucks (29 percent) and midsize cars (28 percent).
While the majority of vehicles leased continue to be in the luxury segment, the most significant growth is in large vehicles, with compact trucks (214 percent), large trucks (142 percent) and large crossover SUVs (96 percent) leading the way. ■