Frequency of Leasing Drops

CNW Marketing/Research reports that during the first six months of 2000 personal-use leases of domestic new motor vehicles fell to 28.9 percent from 31.0 percent in the same period of last year. The accompanying table also shows that sales of new domestic motor vehicles rose to 6.14 million from 6.02 million in the previous six-month period, an increase of 2.1 percent. Over the same periods the percentage of European motor vehicles financed with personal-use leases fell to 43.4 percent from 47.4 percent. Corresponding data for Asian motor vehicles are 28.3 percent and 33.0 percent. Apparently, a higher proportion of consumers have been buying their cars for cash or financing their purchase with loans. The report attributes the decline to a "good stock market, low unemployment, and outrageous incentive levels (averaging $4,000 per vehicle)."

Among domestic motor vehicles, the frequency of personal-use leases ranged from 17.7 percent for Saturn cars to 61.3 percent for Cadillac trucks. In a similar contrast, only 2.5 percent of Kia cars were financed with personal-use leases, but 59.1 percent of Infiniti trucks.