Summer Discounts Cause Lease Declines

While the Big 3’s incentive spending continues to flow into the summer sales, leasing rates have been falling.

In June, General Motors reported that one of every seven new vehicles sold in the U.S. was on a lease contract, according to Automotive News. That rate is a significant drop from last year’s rates and a decline from the one-to-five ratio recorded in May.

The lease rate continued to fall in July to about 12 percent of GM vehicles sold. During the employee discount campaign, GM has not offered any leasing incentives.

With fewer leases, there will be a drop in used vehicles returning to the marketplace when the lease expire – something GM is hoping will drive prices and residual values.