Used-Car Leasing Gets a Fresh Look
Dealers and lenders renew their interest in the once-overlooked practice of used car leasing.

Leasing helps consumers avoid long-term loans with big monthly payments, reduces lender risk, and ensures repeat business for dealerships.
IMAGE: Pexels
High vehicle prices are driving interest in used-car leasing, an idea that was previously overlooked, according to Wards Automotive.
The risks associated with used-car leasing were a major concern in the past. The main pain point was forecasting the worth of a used vehicle many years down the line, according to Wards.
But advanced predictive analytics and the current state of the market, characterized by high demand and low supply, are making leasing pre-owned vehicles a more attractive option, Wards reported.
Rusty West, CEO of MarketScan, told Wards he sees such leasing as a means of easing consumer pain and reducing auto lending risk. A sellers’ market, he says, has consumers paying premium prices on new and used vehicles. Higher interest rates are also contributing to sky-high loan payments.
Nearly 40% of auto deliveries in the early 2000s comprised leased vehicles. Cox Automotive reports that that has dropped to under 20% today. Captive lending companies stopped offering sweetheart lease deals, incentives and rebates because vehicles were moving without them, according to the article.
But West predicts a leasing comeback in today's automotive retail climate. He says leasing:
Helps consumers avoid long-term, high-interest loans with monthly payments pushing $1,000 on purchased high-priced vehicles
Reduces lenders' risk of borrowers defaulting on high-interest, longer-term loans
Ensures repeat business for dealerships because customers return to their stores when the two- or three-year lease expires
Originally posted on Auto Dealer Today
More F&I

F&I Sales Give Dealers First-Half Lift
Product business shored up total profits to avoid an overall revenue tanking as product penetrations held steady, StoneEagle reported.
Read More →
Targeted Training Drives Results
Today’s technology, instead of threatening F&I managers, can actually make them better, according to an industry veteran who’s watched market setbacks roil the unprepared.
Read More →
Just Do It
F&I managers need training, but instead of resisting application or expecting perfection, they should improve by simply acting on what they learn.
Read More →
Dealer Lender Preferences Revealed
When lenders provide consistent, fast service, their overall satisfaction scores with dealers greatly improve, according to JD Power research.
Read More →
Leading with Purpose
In this video, Trent White explains how understanding your people’s 'why' is a key leadership responsibility of F&I professionals and how that mindset drives dealership engagement, trust and performance.
Read More →
Integrating Nontraditional F&I Products
The niche presents a strategic advantage for auto dealerships as they move to adapt to fast-changing consumer expectations in today’s market.
Read More →
Trust Is Personal
Technology, no matter how efficient, can’t replace what the human F&I manager can do, which is to bridge the divide between cyberspace and the in-store experience.
Read More →
Amplify 2026 Billed as Turning Innovation Into Results
Reynolds and Reynolds says its annual retail summit will connect dealers with practical strategies, peer insight, and technology-driven ideas.
Read More →
Own Your Outcome: F&I in the Digital Customer Journey
Finance has historically been the last step in the car-buying process, but it doesn’t have to be. The customer’s journey starts long before they arrive at the dealership, and so should F&I’s involvement.
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 →