New-car leasing continues to gain in popularity among consumers, and is expected to surpass 1999’s previous record high of 3.3 million vehicles by year’s end, according to the National Automobile Dealers Association in McLean, Virginia.
Consumers often find they can obtain a better or costlier car for the same or less money by leasing, rather than buying, though it’s not the best choice for all motorists, particularly those who accrue penalties for additional miles and/or excessive “wear and tear” to the vehicle at the end of the term.
One benefit to the popularity of leasing is that it virtually guarantees a larger pool of recent-model cars being added to the used car market, which in turn helps facilitate lower prices down the road. “The number of personal lease registrations has grown by about 18 percent per year since 2011, and it is that trend which helps drive the used market’s supply levels,” says Jonathan Banks, executive analyst for NADA Used Car Guide.
