- Luxury car leasing market witnesses 12.8 growth rate
- Consumer lease penetration hits 32.2%
- Leasing accounts for 23% of sales in 2013
- The 2019 retail leasing volume decreased 1.3%
- Average luxury auto loan $14K higher
- 4.3 million car leases end in 2019
- 6% of households preferred leasing cars in 2020
- Market share in leasing doubles between 2006 and 2016
Luxury Car Lease Statistics 2021-2022, 2020
Luxury Car Lease Statistics
According to Data Bridge Market Research, the luxury car leasing market is expected to find continued growth for the next several years. Between the forecast period of 2020 and 2027, their market researchers anticipate an expected 12.8% growth rate. A principal factor driving growth in the luxury/exotic vehicle segment is not only the hefty initial investment to purchase a premium vehicle, but also the tremendous costs associated with maintaining a luxury auto that could potentially depreciate as much as 30% the day of sale. Data Bridge’s research suggests that the overall diminishing rate of car ownership to due the increase in on-demand car services is also driving the growth in the luxury leasing market. It’s implied that car leasing and ownership, in general, translates to more of a luxury consumer experience than it has in years past.Source: Data Bridge Market Research https://www.databridgemarketresearch.com/reports/global-luxury-car-leasing-market
Cars Direct reports that while overall car sales were down in 2019, consumer leasing remained at an all-time high. The author cites a 2019 Automotive Trends Report from Edmunds that indicated consumers were leasing cars at a record high since they started tracking leasing statistics in 2002. Edmunds data findings showed that leasing penetration went as high as 32.2% in May of 2019, nearly a percentage point higher than it was in May of 2018. As market share in leasing increased in 2019, so did lease payments across the board by an average of $50. Compact luxury cars and compact SUVs account for the most popular cars being leased in this growing segment.
Source: Cars Direct, https://www.carsdirect.com/automotive-news/car-leasing-hits-new-record-despite-high-prices
Edmunds, in a somewhat backdated article from 2013, notes that leasing at that time accounted for 23% of all new car sales. According to their research, the increase in leasing popularity was a reflection of a recovering economy and expanding credit markets. Edmunds notes that this statistic was unique insofar as leasing extends to all demographics, not just young, first-time auto consumers or older lessees of luxury vehicles. What’s more, car buyers in 2013 were leasing various makes and models of cars from all vehicle segments.
Source: Edmunds, https://www.edmunds.com/industry-center/analysis/autoeconomy-trends-leasing-goes-mainstream.html
Cox Automotive’s market research showed that while leasing volume decreased by 1.3% leasing penetration trend higher overall than 2018 levels. The 1.3% increase was roughly in line with the overall market, however, by August of 2019 leasing penetration was running higher than it was, year over year, in 2018. These figures were anticipated and generally correspond with previously forecasted data. The article states that non-luxury leasing rates were down while leases on new luxury cars were up.
Source: Cox Automotive, https://www.coxautoinc.com/market-insights/leasing-penetration-trending-above-overall-2018-level
In 2015, CNBC conducted an inquiry into which demographic was buying high-end luxury cars and SUV’s. The report confirmed that, as of 2015, despite a much high price tag of over $14,000 above average sticker price, luxury car buyers accounted for a rapidly growing segment of the market. According to the Experian data cited, a consumer earning more than $100,000 annually was 66% more likely to pay the additional premium for a new luxury vehicle. The $755 average monthly payment for a luxury vehicle puts this average payment about $300 higher than the average consumer. It subsequently follows that most consumers of luxury autos willing to pay the exponentially higher sticker price for a vehicle are more affluent.
Source: CNBC, https://www.cnbc.com/2015/12/09/season-of-luxury-autos-numbers-dont-lie.html
More Luxury Car Lease Facts
CNBC instigated a report about the record number of leases due to expire in 2019 amid rapidly escalating car prices. According to CNBC’s statistics, an unprecedented 4.3 million car leases were due to expire in 2019. The article notes that record-high car prices would play a factor in large lease payments as these consumers are faced with having to find a new lease or renew their current one. With the average new car purchase and lease prices rising exponentially, the expectation is that car the average buyer will start looking toward the used vehicle market to save money.Source: CNBC, https://www.cnbc.com/2019/04/17/with-car-leasing-prices-on-the-rise-heres-what-to-do-before-you-sign.html
The Zebra composed an investigation into the cost of car ownership, citing US Census data that 6% of US households were leasing a vehicle in 2020. The article examines the shift in car-buying patterns during the Coronavirus pandemic. The author notes a widening ownership disparity among certain segments of the population who must necessarily rely upon cars to carry out the functions of their daily life. Cox Automotive data cited in their research shows that of the 6% of the population leasing at least one car, the highest percentage of that segment are income earners making over $100,000 annually. While only 6% of the US leases at least one vehicle, the number of lease originations increased nearly five times over between 2009 and 2016, from 1 million to 4.5 million.
Source: The Zebra, https://www.thezebra.com/resources/research/car-ownership-statistics/
Car Buying Strategies affirms that car leasing’s popularity continues to rise, accounting for approximately a third of all new car purchases in 2021. The article cites 2006 data showing that exotic car leasing made up only 15% of the market share. Within a decade, that figure more than double to 31% by the end of 2016. This is further evidence that the popularity of car leasing continues to rise, while this trend is likely to continue over the next several years. High- end luxury cars are being leased most often. Audi, BMW, INFINITY, and Lexus constitute the bulk of luxury makes for which new leases are presently originated. If you need to sell exotic cars get a free cash offer at Driverra.
Source: Car Buying Strategies, https://www.car-buying-strategies.com/New-Car-Lease-Guide.html