New lease volume for the largest national lessors in the United States increased 5% from 2003 to 2004 according to a survey conducted by The Association of Consumer Vehicle Lessors (ACVL).
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The results showed member lessors purchased 1.69 million leases in 2004 compared to 1.62 million in 2003.
“This small increase is a good sign that leasing is once again growing after five years of decline since the high water mark in 1999,” ACVL said in a statement.
But it noted that the increased volume went entirely to manufacturer captive finance companies, which saw their lease volume grow by 9%. Bank lessors, on the other hand, saw their volume decline 17%.
ACVL said though the attention of consumers and dealers has shifted away from leasing in recent years, consumers are again realising the variety of leasing advantages.
These include: protection from continued volatility in used car prices and the possibility of unexpected depreciation; avoidance of the hassles of negotiating a trade-in value when the consumer wants a new vehicle; and reduced sales tax in most states since the tax is only paid on the lease payments rather than the full price of the vehicle.
