Lenders and automakers are warming up to offering more leases for new cars. Leases for new cars have become not only more common, but more enticing to new car shoppers over the past few months.
Leasing became nearly extinct during the recession, but has made a big comeback as consumers who prefer leasing over taking out an auto loan are taking advantage of low monthly payments and no money due at signing lease incentives.
But while new car leasing continues to improve, the used car lease market has been shrinking, CNW Research reports. In August, leases for used vehicles declined more than 22 percent compared to August 2009. August is the third month in a row where used leases were lower than the same month in 2009.
Leases for used vehicles are down recently, according to CNW Research.
Cap costs for used vehicle leases are also down from a year ago. CNW says the cap cost in August was down 6.6 percent compared to August 2009.The cap cost is the dollar amount you’re making lease payments on, or the dollar amount you’re financing. The lender takes the negotiated price of the vehicle, subtracts the predicted dollar amount of what the vehicle will be worth at the end of the lease, and the cap cost is what’s left for you to make payments on.
Maybe used leases aren’t as attractive to shoppers right now as new car leases. It’s hard to pass up some of the lease deals currently being offered through the manufacturers for a new vehicle.