Leasing Down, Causing a Domino Effect of Issues
TransUnion report shows pandemic-caused drop from 31% to 17%.

Report projects an average of 870,000 leases to end in each of the next six quarters.
IMAGE: Antoni Shkraba
Vehicle leasing is down drastically since the pandemic’s onset. Leases made up about 17% of new-car deliveries as of last July, down from 31% in January 2020, just before Covid struck the West, according to credit rater TransUnion.
According to a TransUnion study, fewer than 25% of consumers who ended a vehicle lease in July signed new leases, an approximately 45% decrease from January 2020. The trend could keep used-vehicle prices elevated, it said, since there’s a smaller supply of formerly leased vehicles to feed demand.
The report indicates consumer loyalty falls among consumers returning leased vehicles who take out a vehicle loan instead of leasing again. Their monthly payments consequently increased an average of $217.
“This could pose a challenge to captive lenders that rely on leasing as an effective way to keep consumers in the original equipment manufacturer (OEM) brand portfolio,” the report says.
The report advised dealers to proactively pursue leasers via marketing, as it projects an average of 870,000 leases to end in each of the next six quarters.
“And with early terminations becoming increasingly common, knowing when, where and how to engage with lessees will help mitigate the risk of losing them.”
DIG DEEPER:Auto Leases Fell in 2022
Originally posted on Auto Dealer Today
More Auto Finance

Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Porsche Financial Services Shifts Structure
After 36 years with Porsche, the Financial Services Chief Financial Officer Konrad Riedl is retiring, and the department is realigning its management structure.
Read More →
Tariffs Could Raise Insurance Premiums
As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.
Read More →
Smaller Loans, Longer Terms
The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.
Read More →
New Cars a Tad More Affordable
May averages show that combined circumstances gave auto consumers slightly better buying power for the month, though average prices were up year-over-year.
Read More →
First-Quarter Sees Long Auto Loan Growth
Experian data show more consumers are tapping the method, along with refinancings, to afford buying. Meanwhile, subprime borrowers are getting more access.
Read More →
Mastering Credit Friction
In this video, Josh Krach explains how to turn credit friction into an advantage.
Read More →
April Less Affordable
Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.
Read More →
Auto Lenders, Consumers on a Tightrope
April borrowing data shows that more consumers are bending over backward to buy vehicles, though subprime lending cooled off for the month.
Read More →
Toyota Financial Services President Replaced
Scott Cooke has served in various roles with Toyota Financial Services for over 20 years, including president and CEO, which he retires from on June 30.
Read More →