Over one-fifth of new vehicles in the United States were leased in 2023, with the rest being sold outright. The percentage found in the third quarter of 2021 was even higher, with 26 percent of new vehicles in the U.S being leased that year.
Why lease a vehicle?
Depreciation is the largest portion of the average annual cost of vehicle ownership. When leasing a vehicle, this cost is absorbed by the leaser, rather than the consumer. Similarly, maintenance costs are often paid by the company leasing the car, in order to keep the car in good condition for eventual sale after the lease ends. Finally, with the interest rates on auto loans between four and five percent on average for a 60-month loan, financing a car purchase can add a significant amount to the sticker price.
The auto market in the United States
Vehicle sales in the United States amount to millions of cars per year. Through leasing new cars, drivers have the opportunity to enjoy a new vehicle without worrying about the longer term issues of car ownership. For suppliers, the cars retain a significant portion of their original value. After the lease, suppliers can then sell them in the automotive aftermarket.
