Recent industry news reports that lease penetration is due to increase up to 40% in many market segments with overall projections for 2010 ranging from 18 to 25 percent.
Domestic automakers that exited leasing in the fall of 2008 are leading the charge in increased leasing.
“These same lessors moved back into leasing in late 2009 and are now offering more incentives and subsidized residuals ultimately making leases more attractive for consumers, ” said leasing expert Richard Joseph of the Joseph Auto Group and president of Swapalease.com lease transfer service.
Leasing offers manufacturers several advantages over alternative sales and financing methods such as client retention and increased customer loyalty. In addition, leasing permits consumers to step up to more expensive vehicles permitting manufacturers to obtain higher unit transaction prices. It also permits manufacturers to better manage production and inventories from the client cycles leasing creates