According to the Manheim 2012 Used Car Market Report, new light-vehicle leasing in the U.S. increased to 20 percent of retails sales (excluding fleets) in 2011, one percent higher than 2010.
The report notes that “for the most part”, the new car industry had the right approach towards leasing. This constitutes of leasing new cars to buyers with good credit who like to regularly change their vehicles, as well as projecting realistic end-of-lease resale values.
Overall leases rose 17 percent over 2010 to 2.1 million units last year and a startling 85 percent more than 2009’s 1.14 units, when buyers were deterred by the recession.
Manheim notes that the aftermath of the recession can still be felt today, since off-lease vehicles’ numbers will continue to decline. This will result in lower numbers of low-mileage used vehicles, thus increasing their resale value.
This estimate is confirmed by preliminary data from the National Auto Auction Association, which show that 2011 used car auctions decreased for the fourth year in a row, to less than 7.8 million vehicles.
Sales of ex-lease vehicles from rental fleets and other commercial sellers fell by 20 percent, in contrast to dealer-owned used cars that rose 10 percent. In total, dealer-owned vehicles accounted from 55 percent of vehicles sold at 2011 NAAA auctions last year, a 10 percent increase from 2010 and 20 percent compared to 2009.
Story References: Autonews
