PDF LEASE MARKET REPORT - New Cars, Used Cars, Car Reviews and ...
LEASE MARKET REPORT
J A N UA R Y 2 017
EXECUTIVE SUMMARY
Leasing Plays a Major Role in 2016 Record New Car Sales
LEASE VOLUME
4.3 M 4M
3.2 M
3.6 M
2.6 M
2.5 M
2M
2.6 M 2.3 M 2M
1.4 M
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Key Takeaways
2016 LEASE VOLUME SETS RECORD Lease volume grew for the seventh consecutive year in 2016, achieving an alltime high of 4.3 million units. Over the past five years, lease volume has grown by 91% and has been a major catalyst in driving new vehicle sales in the U.S.
LEASING STIMULATING SUV SALES With SUV prices heftier than those for cars, leasing is a way for consumers to enter this popular segment in a more cost-efficient manner. This helped SUVs outsell passenger cars for the first time ever in 2016.
CONSUMERS ATTRACTED TO LOW PAYMENTS 2016 lease payments averaged $120 less than average finance payments. For large pickup trucks, which enjoy high residual values, lease payments averaged $206 less, representing the largest difference of all vehicle types.
MILLENNIALS PROPORTIONALLY LEASE THE MOST Though they account for only 12% of all leases in the U.S., millennials lease more than any other age group as a proportion of their overall sales. Nearly onethird of millennials who purchased a new vehicle in 2016 decided to lease.
LEASE MARKET REPORT
1
LEASING GROWTH
Leasing Drives Sales to Record Levels
LEASE PERCENTAGE OF NEW VEHICLE SALES
35%
31% 30%
25%
20%
15%
10%
5%
0%
'06
'07
'08
'09
'10
'11
'12
'13
'14
'15
'16
Leasing continues to grow as a percentage of new vehicle sales. In 2016, it increased to 31% (from 29% in 2015).
80% of Americans Finance at Their Dealership
SALES BY PURCHASE METHOD
CASH/INDEPENDENT FINANCE SALES
DEALER FINANCE SALES
LEASE SALES
60%
49%
50%
40%
31% 30%
20% 20%
10%
0%
'06
'07
'08
'09
'10
'11
'12
'13
'14
'15
'16
The way consumers pay for their vehicles has completely changed over the past decade. Ten years ago, cash/independent finance was the most prevalent way people purchased a vehicle. That dropped from 41% in 2006 to 20% in 2016. In its wake, financing at the dealership (OEM/dealershipaffiliated bank) has increased along with leasing.
2
LEASE MARKET REPORT
LEASING GROWTH BY VEHICLE TYPE
SUVs, Trucks Power Leasing Growth
LEASE VOLUME BY VEHICLE TYPE
CAR
SUV
TRUCK
2.5 M 2M
1.5 M
1M
.5 M
'06
'07
'08
'09
'10
'11
'12
'13
'14
'15
0M '16
Among the major vehicle segments, car lease volume is declining, which is in line with the greater market trend of declining sales. However, SUV sales climbed in 2016, outselling passenger cars for the first time ever. With that, we watched SUV lease volume grow to 1.9 million units and SUV lease penetration rate rise to 32%. Pickup trucks also experienced a lease volume boost. In 2016, 15% of trucks were leased, which grew from 14% year over year.
With gas prices low and fuel efficiency improved, consumers are flocking to pickups and SUVs. The downside is the cost as they are considerably more expensive than passenger cars. Leasing reduces this burden and has been an avenue for consumers to purchase pricier vehicles.
LEASE PENETRATION BY VEHICLE TYPE
35%
CAR
SUV
TRUCK
30%
25%
20%
15%
10%
5%
0%
'06
'07
'08
'09
'10
'11
'12
'13
'14
'15
'16
LEASE MARKET REPORT
3
LEASING GROWTH BY BRAND
Nearly All Brands See Leasing Bump
INFINITI BMW LEXUS AUDI
VOLK SWAGEN MERCEDES-BENZ
J AGUAR LAND ROVER
LINCOLN ACURA SMART
CADILLAC BUICK
PORSCHE VOLVO MINI
HYUNDAI MAZDA HONDA JEEP KIA GMC NISSAN
CHRYSLER FIAT
CHEVROLET TOYOTA SCION FORD RAM SUBARU DODGE
MITSUBISHI
63%
58%
55%
52%
51%
50%
48%
48%
48%
46%
45%
45%
42%
36%
36%
36%
33%
32%
31%
29%
29%
28%
27%
26%
26%
25%
24%
22% 21% 20%
2016 LEASE PENETRATION 2011 LEASE PENETRATION
20%
14%
7%
Every brand except Mitsubishi experienced more leasing over the past five years. The Japanese big brands -- particularly Honda and Nissan -- saw the least growth, as they historically lease many vehicles anyway. Significant growth has come from truck/SUV brands such as Ram, GMC and Land Rover as the market flocked to these vehicles.
4
LEASE MARKET REPORT
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