auto dealer in black and red logo
MenuMENU
SearchSEARCH

Used-Car Leasing Gets a Fresh Look

Dealers and lenders renew their interest in the once-overlooked practice of used car leasing.

August 14, 2023
Used-Car Leasing Gets a Fresh Look

Leasing helps consumers avoid long-term loans with big monthly payments, reduces lender risk, and ensures repeat business for dealerships.

IMAGE: Pexels

2 min to read


 

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

More Dealer Ops

Auto Dealer Today, Dealer Debrief, 07/15/2026, with Lauren Lawrence
Dealer Opsby Lauren LawrenceJuly 15, 2026

Dealer Debrief: Defection Data & EV Updates

In this week's debrief, host Lauren Lawrence discusses how to use defection data to your advantage and the latest on EV sales and charging infrastructure.

Read More →
Two professionals shake hands while exchanging a car key fob beside a vehicle, symbolizing a vehicle sale, lease agreement, or dealership transaction.
SponsoredJuly 8, 2026

How Defection Data is Bridging the Dealership Conversion Gap

Lead volume is flat, cross-shopping is up and brand loyalty is in retreat. As confident sales teams keep losing buyers they thought they had, daily industry sales data is showing dealers exactly where their funnel is breaking and how to fix it without buying a single new lead.

Read More →
Auto Dealer Today, Dealer Debrief, 07/02/2026 with Lauren Lawrence
Dealer Opsby Lauren LawrenceJuly 2, 2026

Dealer Debrief: Where are you losing customers?

In this week's debrief, host Lauren Lawrence discusses the hidden leaks in dealerships where you might be losing customers without even realizing it.

Read More →
Ad Loading...
Auto Dealer Today, Dealer Debrief, 06/25/2026, with Lauren Lawrence
Dealer Opsby Lauren LawrenceJune 26, 2026

Dealer Debrief: Improving Your Inventory Management

In this week's debrief, host Lauren Lawrence covers a new survey that shows what service technicians really want and two launches that could help improve your inventory and vehicle life cycle management.

Read More →
group of people standing in a circle holding puzzle pieces together
Dealer OpsJune 1, 2026

Ladies and Gentlemen, This Is a Dealership: Why the Fundamentals Still Decide Who Wins

A teaching moment by a legendary football coach happens to apply perfectly in the auto retail space. Learn what it is and how to use it to your store’s advantage.

Read More →
Cover image for a BOK Financial report titled “Timing the market: How avoiding volatility entirely can hurt long-term reinsurance program performance.” The image shows several road construction barricades with flashing amber warning lights lined up in a nighttime work zone. Beneath the image, red text explains that avoiding volatility can mean falling behind inflation and missing market rebounds that drive long-term surplus growth. The BOK Financial logo appears at the bottom right.
SponsoredMay 8, 2026

What Market Timing Mistakes Mean for Your Reinsurance Program

When volatility hits, dealer-owned reinsurance programs face a familiar temptation: pull back and wait for calmer waters. New data from BOK Financial shows why that instinct can quietly cost you years of surplus growth.

Read More →
Ad Loading...
two cars on a billboard, No Hidden Fees
ComplianceMay 1, 2026

Dealer Ads and the FTC

The agency has made it clear in recent enforcement actions and warnings, in auto retail and other industries, that advertised prices must include all nonoptional costs to the consumer.

Read More →
Closeup of white car's headlight, front end
Dealer Opsby Hannah MitchellApril 17, 2026

Used Autos Supply Dwindles

The March shopping surge, despite high prices, cut into inventory by the most since the thick of the pandemic, Cox Automotive analysts calculated.

Read More →
hands making protective frame over red car, Risk Reality Check, Be Proactive, Auto Dealer Today logo
Dealer OpsApril 1, 2026

Managing Risk Effectively Through Changing Times

The variables influencing risk pricing have changed significantly over the past five years. Being proactive and responsive to emerging trends is not optional but essential.

Read More →
Ad Loading...
Car key, stacks of coins, and a paper car cutout with AutoPayPlus logo, representing auto financing, loan terms, and vehicle affordability trends.
Dealer Opsby StaffMarch 31, 2026

Survey Reveals What Won't Fix What's Breaking Car Sales

AutoPayPlus says extra-long auto loans are trapping consumers and threatening the dealer trade-in cycle, and that the industry is leveraging the wrong tools to combat high MSRPs.

Read More →