Providers and Administrators in blue logo
MenuMENU
SearchSEARCH

Leasing Down, Causing a Domino Effect of Issues

TransUnion report shows pandemic-caused drop from 31% to 17%.

February 21, 2023
Leasing Down, Causing a Domino Effect of Issues

Report projects an average of 870,000 leases to end in each of the next six quarters.

IMAGE: Antoni Shkraba

1 min to read


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.

Ad Loading...

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

Topics:Industry

Originally posted on Auto Dealer Today

More Industry

Graphic of last week's estimated used retail days to turn
Industryby StaffMay 6, 2026

Black Book: Weekly Market Update

Conversion rates were flat last week at 63%, Black Book analysts calculated, as low-mileage and almost-near units outpaced the overall market.

Read More →
cargo ship with vehicles, at dock
Industryby Lauren LawrenceMay 5, 2026

EU Auto Association Urges Action

Trade relations between the European Union and the U.S. are at risk, causing the European Automobile Manufacturers Association to push lawmakers to make a decision.

Read More →
two people working on a paper contract together
IndustryMay 1, 2026

Driving into the Super CFC Era

Understanding the risks and benefits of retail accounting and Super CFCs can help you better present options to your dealer partners.

Read More →
Ad Loading...
Photo of outdoor electric-vehicle charger
Industryby Hannah MitchellApril 28, 2026

Global Roads Getting More Electric

China easily reigns in the segment, but European countries’ adoption rates are growing. The U.S., probably due to market size, has the second biggest EV fleet.

Read More →
Graphic of wholesale weekly price index
Industryby StaffApril 28, 2026

Black Book: Weekly Market Update

The full-size pickup segment, which has been dominant in the U.S., ended 11 consecutive weeks of gains with a slight dip last week.

Read More →
Line graphic showing week-over-week wholesale auto price changes
Industryby StaffApril 22, 2026

Black Book: Weekly Market Update

Wholesale auto conversion rates dropped slightly as auction buyers proved picky last week, analysts observed.

Read More →
Ad Loading...
pavement with car and charger wrapped around it painted on

EV Battery Cycle Life at Risk

Fast charging of electric vehicles provides a solution for range anxiety, but it also poses a risk to battery cycle life due to increased temperatures, according to an EV supply chain data provider.

Read More →
Photo of exterior facade of Beardmore Chevrolet store
Industryby Hannah MitchellApril 14, 2026

Founding Family Sells Nebraska Dealerships

Expanding Midwest automotive group picks up three stores as part of the robust transaction activity early this year.

Read More →
Photo of white 2026 Ford Bronco on a sandy beach
Industryby Hannah MitchellApril 10, 2026

March New-Vehicle Sales Don’t Reflect War

Cox Automotive data shows Americans doubled down on big-is-better despite price increases. Slightly higher incentives helped fuel the demand.

Read More →
Ad Loading...
Photo from the rear of the XC60 SUV
IndustryApril 8, 2026

Volvo to Shift Some EV Production to U.S.

The automaker says its movement of some electric-vehicle work to the S.C. factory is part of a more tailored product focus. It also plans to add a new hybrid model to the plant’s itinerary.

Read More →