H1 2016 auto leasing hits record high

The first half of 2016 closed with 2.2 million leased vehicles on the roads, higher than any first half of a year in history, according to a recent report from research consultancy Edmunds.com which says lease volume has doubled in size from five years ago.

In the opening six months of the year, leasing accounted for 32% of new retail vehicle sales. This represents a growth of 13% from 2015 and 41% from five years ago. Edmunds says its analysis suggests lease volume growth has come from non-traditional segments such as pick-up trucks and compact cars, as well as from non-luxury brands, since low monthly payments and ease of ownership via leasing have proved attractive to buyers.

Older buyers aged 75+ have embraced leasing in a big way and have experienced the largest increase in leasing when compared to other age groups. Leasing penetration has increased 74% among these buyers in the past five years. Then, only 19% of new vehicle buyers in this age group chose to lease compared to 32% today. Despite this surge, Millennials are still the age group that lease the most proportionally.

While new vehicle registrations are skewed heavily male (58% male, 42% female), a higher percentage of women overall lease compared to their male counterparts. The gap is shortening, though, with women having a lease penetration rate 19% higher than men five years ago compared to just 8% this year.