Leasing is starting to increase as zero percent interest deals disappear and interest rates start to rise, according to an analysis in TheDetroitBureau.com.
The percentage of sales with zero percent financing dropped from 14.6 percent in August 2016 to 7.4 percent in August 2018, says Edmunds. August is usually a month to clear out inventory with good financing deals.
Interest rates are also starting to rise, going from an average of 3.9 percent on new financed deals in August 2013 to 5.8 percent in August 2018. Inventory levels are at their lowest in two years, so automakers don’t feel the need to offer incentives to clear out stock.
Those two trends – the drop in zero percent financing and the rise in interest rates – are pushing more consumers to consider leasing to get their monthly payment down. U.S. News reports a recent increase in vehicle lease transactions.Download Bulletin PDF