Leasing Down, Causing a Domino Effect of Issues
TransUnion report shows pandemic-caused drop from 31% to 17%.

Report projects an average of 870,000 leases to end in each of the next six quarters.
IMAGE: Antoni Shkraba
Vehicle leasing is down drastically since the pandemic’s onset. Leases made up about 17% of new-car deliveries as of last July, down from 31% in January 2020, just before Covid struck the West, according to credit rater TransUnion.
According to a TransUnion study, fewer than 25% of consumers who ended a vehicle lease in July signed new leases, an approximately 45% decrease from January 2020. The trend could keep used-vehicle prices elevated, it said, since there’s a smaller supply of formerly leased vehicles to feed demand.
The report indicates consumer loyalty falls among consumers returning leased vehicles who take out a vehicle loan instead of leasing again. Their monthly payments consequently increased an average of $217.
“This could pose a challenge to captive lenders that rely on leasing as an effective way to keep consumers in the original equipment manufacturer (OEM) brand portfolio,” the report says.
The report advised dealers to proactively pursue leasers via marketing, as it projects an average of 870,000 leases to end in each of the next six quarters.
“And with early terminations becoming increasingly common, knowing when, where and how to engage with lessees will help mitigate the risk of losing them.”
DIG DEEPER:Auto Leases Fell in 2022
Originally posted on Auto Dealer Today
More Industry

Badger State Dealership Gets New Owner
The longtime southern Wisconsin store moved from one area auto group to another, keeping the business in Dairyland.
Read More →
The Cycle of Negative Equity
Third-quarter data shows consumers still rolling over debt and stretching loan terms, raising their risk of remaining underwater.
Read More →
Charger Network Growth Slows
Despite a projected increase in public EV chargers in 2026, charging infrastructure remains a top concern for consumers as the gap between the most and least EV-friendly places remains substantial.
Read More →
Lenders, Consumers Take on More Auto Loan Risk
September records loosened credit access the most in over a decade as buyers took advantage of the conditions to afford trading, though loan applications fell.
Read More →
Next-Gen Hybrids in Sight
Dealerships can expect to see revamped hybrids from Honda next year as the company rolls out a new system and model lineup.
Read More →
Gem State Stores Change Hands
A larger auto group founded in the industry’s early years sold two franchises to a neighbor group that's on a growth spurt.
Read More →
Charging In Motion
Honda has been researching wireless in-motion charging for electric vehicles since 2025, and new technology developments have put it a step closer to a final product.
Read More →
Twin Cities Stores Sell
Minnesota-based Walser Automotive Group made what it called the most significant acquisition in its history with a three-rooftop deal in Minneapolis.
Read More →
U.S. Auto Sales Still Below Prepandemic Levels
Mobility Global industry observers don’t expect the market to return to the higher volumes that became routine before Covid but to stay well below its potential.
Read More →
The Powertrain Shift
Electric-vehicle owners are backpedaling, according to new data, with product availability driving many to shift back to gas-powered engines.
Read More →