Why The Surge In Leasing vs Buying a Car?
The number of consumers choosing to lease rather than buy in the last year has increased significantly. More than 25% of new-cars sold in 2015 were leases, versus 22% the year prior. Learn why consumers are moving towards leasing vs. buying:
Consumer Culture
The shift in consumer culture has made a huge impact. The majority of our entertainment and possessions are paid for monthly. Beyond rent and car loan or lease, smart phones, streaming services, the cloud, and countless other tangibles and intangibles are all included in our monthly budgets. Balancing all those recurring transactions has veered consumer focus towards low monthly costs.
Rising Cost of Buying
New cars are steadily increasing in price, meaning higher monthly loan payments. The average price for a new car or truck is over $33,000, according to Kelley Blue Book. This is a 2.6% rise from 2014’s $32,000. As the price of purchasing a new car increases, no wonder so many consumers are opting for leasing. They are driving the same vehicle, but only paying for its depreciation, rather than the total value of the vehicle.
Technology
Everything we own is becoming “smart”. Technology for our phones, entertainment, fitness gear, homes and cars is consistently advancing, making newest tech obsolete in just a few years. By leasing, consumers can take full advantage of the latest safety and entertainment features while they are still relevant.