Now that auto leasing is starting to gain popularity again, captive finance companies are trying to get back in the market and offer leasing as another option besides an auto loan for their customers.
GMAC and Chrysler Financial halted leasing last year after taking big losses from SUVs and trucks coming off lease that had declined in value. During that time, independent lease companies and other financial institutions offered leases to help fill the void in the market.
According to data from CNW Research, through June of 2009, GM vehicles were leased 17.6% of the time, even though GMAC just recently started offering leases to customers on certain models. Chrysler vehicles were leased 10.2% of the time. Ford, which did not stop offering leases, leased vehicles more than 21% of the time.
Historically, independents are responsible for about half of all brand leases, more so with popular and higher priced nameplates, CNW Research reports. About 25% of all new vehicle intenders prefer leasing over purchasing using a car loan.
If captive finance companies offer more leasing incentives, leasing could keep gaining popularity among car buyers.
When Chrysler Financial stopped leasing completely, independent leasing companies and other financial institutions stepped in and offered leases to buyers.
Chart via CNW Research.