MIAMI – It may be time for credit union to build plans to expand their auto leasing programs, according to one company that is forecasting lease penetration rates will double by 2020, averaging around 42% across most vehicle brands and segments.
LeaseTrader.com, noting that lease penetration rates today average 22%, up from 9% in 2009, said leasing has only continued to strengthen, as credit markets have stabilized and automakers have begun to use leasing as a way to aggressively turn inventory.
“Drivers today have a much higher interest in leasing because of the way it fits their changing lifestyles,” said Sergio Stiberman, CEO and founder of LeaseTrader.com. “A growing number of people are more interested in leasing because they want a low monthly payment and the ability to change cars every three years – or sooner.”
LeaseTrader.com projects vehicle leasing across all brands and segments will grow in the next 10 years because the process of leasing a vehicle has become more flexible and convenient. Drivers today have the ability to get much shorter terms compared with five or 10 years ago, and now consumers can comparison shop for a new lease online and settle into a payment plan that best fits their financial situation. Demand for 12-month leases on LeaseTrader.com jumped this year – up 16.4% year over year – the company said, reflecting growing consumer sentiment that shorter leasing programs are here to stay.
