Some Facts About Leasing

The popularity of leasing your car has exploded in recent years, with individual consumers accounting for the bulk of the increase. Leasing has grown more than tenfold in less than a decade and now accounts for more than 35% of the 17 million-plus vehicles sold in the United States.

Why the dramatic upsurge in auto leasing?

The ever increasing cost of new vehicles combined with a decline in the disposable savings of Americans and changes to the tax laws are the main causes. In 1987, more than 70% of disposable savings were available for the purchase of consumer goods. By 1993 that figure had declined to less than 40%. This year, the percentage continues its downward slide. Additionally, the many tax deductions that favored purchasing over leasing were eliminated. Since those tax laws were changed, leasing has enjoyed a steady increase every year for the last ten years.