IRVINE, Calif. -- According to a recent survey by Autobytel, 38 percent of consumers are seriously considering leasing their next new vehicle, and dealers are reporting more leasing business than six months ago.

Another 28 percent of survey respondents said they are more interested in leasing now than they were a year ago. Twenty-five percent of consumers said their primary reason for considering leasing is because it's the only way they can afford a decent vehicle. Moreover, 75 percent of consumers said leasing would enable them to upgrade to a better, premium vehicle.

Those that said they were not interested in leasing cited the need for ownership as the top reason. Thirty-two percent of survey respondents said they simply want to own their own car. An additional 28 percent said they could get a better deal through buying. Another 26 percent of consumers claimed the terms/restrictions associated with leasing were their primary objection. A total of 73 percent said that in the long run, they see leasing as more expensive than financing a new vehicle.

As for dealers, 55 percent of dealers reported that they are doing either "significantly more, or somewhat more" leasing business than six months ago. Fifty-six percent of dealers agreed with analysts' predictions that leasing rates could hit 22 percent in 2005 and 26 percent by 2007, although 40 percent of dealers claimed those numbers were too high.

Finally, 93 percent of dealers said a rise in leasing is having, or will have, a positive impact on their dealership. Another 56 percent of Autobytel dealers said leasing is more beneficial to business than traditional sales.