Cleveland, OH, June 12, 2019 — US consumer spending on motor vehicle leases is forecast to rise 1.6% annually in nominal dollars to 2023, according to Motor Vehicle Leasing: United States, a report recently released by Freedonia Focus Reports. Increased consumer leasing of crossover utility vehicles (CUVs), sports utility vehicles (SUVs), and trucks – which generally lease at a higher price point – will drive growth over the forecast period. Furthermore, millennials – the population cohort most likely to lease a car – will continue to fuel replacement demand for car leases, especially as they begin to start families. Millennials will also be attracted to car leases due to the low monthly payments relative to many car loan payments. Moreover, some consumers will continue to choose the short term commitment of leasing so that they can more quickly update to the newest technology. However, a peak of lease returns in 2019 will drive down the price of used cars, encouraging used car sales instead of leases. Rising competition from shared mobility services such as Canvas, Fair, and Zipcar will also restrain gains to a small degree.
These and other key insights are featured in Motor Vehicle Leasing: United States. This report forecasts to 2023 personal consumption expenditures (PCE) on motor vehicle leases in nominal and real (inflation-adjusted) US dollars. Expenditures are segmented by vehicle in terms of:
- CUVs, SUVs, and trucks
To illustrate historical trends, total PCE, the various segments, and price indexes by segment are provided in annual series from 2008 to 2018.
For the purpose of this report, trucks include light vehicles such as CUVs, pickup trucks, SUVs, and vans. Motorcycles are excluded from the scope of this report, as are medium- and heavy-duty trucks, and RVs (recreational vehicles).
PCE data include spending by nonprofit institutions serving households (e.g., the value of education services provided by nonprofit colleges or medical care provided by nonprofit hospitals). Consequently, the spending by such parties on motor vehicle leases is included.
More information about the report is available at: