by Corinne Gangloff
January 24, 2017
Cleveland, January 24, 2017 — US consumer spending on motor vehicle (MV) leases is forecast to decline 0.6% annually to 2020. Falling demand for new MVs – combined with rising monthly lease fees – will weigh on demand for leased vehicles, undercutting spending. In addition, leased MVs will face competition from a glut of relatively inexpensive, newly off-lease used vehicles.
However, the continued preference among luxury car drivers to lease rather than buy will restrain further losses. Many of these consumers prefer the shorter-term commitment of a lease, as it allows them to maintain an up-to-date appearance. Luxury vehicles have the highest lease penetration rates, and leases among luxury brands account for over half of their new MV sales.
These and other key insights are featured in Motor Vehicle Leasing: United States, a report recently released by Freedonia Focus Reports, a division of The Freedonia Group. The report forecasts US personal consumption expenditures on motor vehicle leases in both nominal and real (inflation-adjusted) US dollars to 2020. Total expenditures are segmented by market in terms of:
For the purposes of the report, trucks include light vehicles such as SUVs, pickup trucks, vans, and crossover utility vehicles.
To illustrate historical trends, total expenditures and the various segments are provided in annual series from 2005 to 2015.
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