None
Small fraction
| Despite the energy around used-vehicle leasing last spring, it accounted for only a sliver of used-vehicle transactions in 2016. | ||||
| 2017 | ||||
| January | 0.7 | | | |
| | | | | |
| 2016 | ||||
| December | 0.9 | | June | 0.9 |
| November | 0.9 | | May | 1 |
| October | 0.9 | | April | 1 |
| September | 0.9 | | March | 1.2 |
| August | 0.9 | | February | 1.1 |
| July | 1 | | Januar | 0.8 |
| Source: Edmunds | ||||
Used vs. new
A used or CPO lease doesn't always have significant cost savings compared with a new lease, Manheim's 2017 Used Car Market report shows.
For example, a new vehicle for $55,000 with a residual value of 57% and no
manufacturer incentives would have a monthly payment of around $847. But
the new vehicle would likely come with
incentives attached, such as a $3,000
rebate and a lower interest rate. In that
case, the monthly payment could be $591.
In 3 years, that vehicle could be $35,350 with a monthly payment of $581, just $10 less than the new-vehicle payment, which could make the new
vehicle more attractive to customers.
NEW ORLEANS -- In spring 2016, the idea of used leasing buzzed around the National Automobile Dealers Association convention and the American Financial Services Association Vehicle Finance Conference in Las Vegas. Nearly a year later, used leasing is still only a sliver of the market. Used-vehicle lease payments are too close to those for new vehicles to make them appealing, and many lenders are unsure of how to set the residual values on used leases, experts said here last month at the associations' 2017 events in New Orleans.
