Monday, February 6, 2012

Report: New car leasing rises to 20 percent of U.S. sales in 2011

New light-vehicle leasing increased in 2011 from a year earlier, to 20 percent of U.S. retail sales, according to the Manheim 2012 Used Car Market Report.

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.

The report also notes that because fewer vehicles were leased during the recession, off-lease volumes will continue to decline this year. That decline is expected to contribute to tight supplies of fairly new, low-mileage used vehicles, which in turn should bolster used-vehicle prices.

Preliminary data show that the number of vehicles sold at National Auto Auction Association member auctions in 2011 declined 8 percent to less than 7.8 million units, the fourth straight year of declines, the report says.

Sales of vehicles that are off-lease, retired from rental fleets or owned by other commercial sellers sold at NAAA auctions fell “more than 20 percent” in 2011, while sales of dealer-owned vehicles increased 10 percent.

Dealer-owned vehicles made up 55 percent of all vehicles sold at NAAA auctions in 2011, up from 45 percent in 2010 and 40 percent in 2009.

Story References: Autonews

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