On the Dash:
- Leasing made up nearly a quarter of new-car sales in 2024.
- EV incentives drive leasing interest, with 70% of shoppers likely to consider it.
- Lease-end buyout options continue to shape buyer confidence.
Leasing is seeing renewed attention in 2025 as vehicle prices and MSRPs continue to rise, making monthly payments an increasing concern for buyers. In 2024, leasing accounted for nearly a quarter of new car sales, reflecting steady consumer interest despite widespread confusion about the process. Studies from that year found that more than half of consumers who did not lease could not explain it, and even some lessees were unclear about vehicle ownership.
Data shows that leasing historically provides lower monthly payments and down payments compared with traditional financing, which helped keep affordability within reach as new-vehicle prices surged. Interest rates on leases, often financed by manufacturers, typically remain lower than conventional loans, further enhancing cost efficiency for buyers.
Leasing has also remained a key driver in the EV market. In 2024, many EV leases offered attractive federal and state tax incentives, especially in markets like Colorado and California, making it a preferred option for buyers looking to capitalize on these benefits. A CDK Global study showed that 70% of EV shoppers would consider leasing if tax incentives were included.
Flexibility at lease end continues to influence consumer choices. Most leases allow a buyout, sometimes with existing equity applied toward the purchase, restoring consumer confidence after a period when some automakers, including Nissan and Tesla, limited lease buyouts. A CDK study found that more than half (52%) of EV buyers would avoid leasing if buyouts were restricted.
For dealers, leasing remains more than a tool to move inventory. The combination of lower payments, interest rate advantages, and lease-end flexibility continues to make it a strategic option for both attracting buyers and supporting long-term customer relationships.
