27.6%.
My Lexus dealer says about 70% of deals are leases and BMW/MB is even higher.



By Philip LeBeau | CNBC – 13 hours ago
@cnbc on Twitter

American car buyers have once again fallen in love with leasing.
New data from Experian Automotive shows auto leasing hit a record high with 27.6 percent of financed new vehicles purchases in the second quarter being a lease.

"Leasing has become very popular and it's been rising steadily," says Melinda Zabritski, Experian's Senior Director of Automotive Credit. "Right now, the average monthly payment on a lease is about $50 less than it is for buying a new car with a traditional auto loan."

In the second quarter, the average monthly payment for a new vehicle lease was $408, down $8 from the same period in 2012.
(Read more: $ave Me: Fast tricks to drive deals on a new car )
Todd Skelton, who oversees AutoNation dealerships in Palm Beach and Broward County, Florida, said customers are now hunting for the lowest monthly payment with a new car or truck, and often that means taking out a lease.

"People are much more open-minded about leasing. Nowadays, almost any make or model can be leased and that's attractive to a lot of customers," says Skelton.

Leasing Comeback With Auto Rebound
Three years ago, just 17.7 percent of vehicles bought with financing were leased.
But leasing has soared since then due to a combination of more aggressive leasing offers by automakers and buyers searching for the best option to keep monthly payments in check amid rising new car and truck prices.

"Manufacturers have enhanced their lease options so leasing is often a better deal than financing with a loan," says Skelton.
(Read more: Auto rebound bittersweet in auto towns left behind )
Consider what's happened with pickup trucks. Skelton points to a few years ago when the monthly payment for a three or four year pickup lease was often around $500 while buying the same truck with an auto loan would cost approximately $400 a month. The opposite holds true today as better terms and the extremely low interest for lease packages make it often less expensive to lease pickups rather than buy.
"Pickup truck leasing has become much more popular," says Skelton.

Amount Financed, Loan Length Climbs
With the average transaction price (what buyers actually pay dealers) for a new car or truck now greater than $31,000, the average amount financed by buyers in the second quarter climbed $812 to $26,526.
Meanwhile, the duration of a typical auto loan in the second quarter has increased by a month to 5 years and 5 months.

(Read more: Auto sales, home repair, debt disputes top consumer gripes )
Experian says the average new vehicle auto loan rose $5 in 2Q to $457.
Almost 20 percent of all new vehicle loans issued between April and June called for buyers stretching out payments over 6 to 7 years. Because they are taking out longer loans at interest rates that are usually just over 4 percent, many car buyers are changing their approach in dealerships.
Car buyers are increasingly taking cash back over the lowest interest rate being offered because rates are already so low," says Zabritski.

 

I think there is a good chance my next one will be a lease. I always buy the cars and then trade them in in 3-4 years underwater by 4-6k. I am going to lease , flip them every 2-3 years and keep it stock.

 

Leasing is making more and more sense. $199 for a G37 is a heck of a deal, and my Lexus dealer just leased a GS350 F-Sport for $420 a month. And I'm looking at a 550i for $613 a month. My next car will probably be a lease too. Just have to decided to keep my car or not (already paid off)

 

Yeah I think I want to lease my next and put that extra money into an IRA

 

Wait, what? Don't you spend more money in the long run leasing?

 

I will only lease car now. I dont even keep my car over 2-3 yrs ever, and I always lose money when trading the cars in.

So from now on I just gonna lease my cars and get a new car every 2-3 yrs.

 

only true if you keep your car for a while. But for the previous posters who only keep their car 2-3 years, leasing doesn't lose them money

 

if you buy and keep your car for 6-7 years (or more), buying will make more sense. you drive the car to hell, and you still get some equity back when you get rid of it

however, from what i see (including myself), a lot of people don't keep their cars for more than 2-3 years, and they tend to get new things again after that. in that case, leasing is a far more attractive option. you can also write off the car easier if you have a business

every state is different, but here in cali, if you lease a car, you only pay the sales tax on the "portion" of the car that you pay. so if you get a 100k car and residual is 50% (50k), you only pay tax on 50k when you lease, vs, tax on 100k if you buy. that's 8% on 50k which is freaking 4k already.

and on most of the cars i have leased, at the end of the term, you might actually get some money back if you sell the car privately (or to carmax), meaning the underestimated the residual.

so as usual, it depends on the situation, but if you are financially ready and into changing cars every few years, leasing can a very attractive option (and makes sense).

 

lol very good point tammer, leasing a car makes me NOT want to modify it = save some money

 

I drive about 32,000 miles a year, so leasing is a no go for me.

Obviously the biggest leasers are luxury car customers for a number of reasons, including,,,

- They often want and can afford a new car every 2-3 years anyway, so leasing makes perfect sense.
- Not many people are stupid enough to buy a Mercedes, BMW, or just about any other non-Lexus/Acura luxury car and keep it after the warranty is up.

 

leasing is renting, and renting is less expensive on a cash flow basis than owning/financing. most people live from paycheck to paycheck, so "lower payment = better" without thinking what it might be like to have no payment at some point. most resign themselves to a payment forever, only looking at how much it is. so when they see "gee i can drive THAT for the same/bit-more/less than what i pay now? WANT!"

 

I always thought that to. That after the leasing term with a option to buy was always higher than if you would have bought the car in the beginning.. I thought about it to a few months back.... Most of us have 2 or more vehicles so it kinda makes sense to lease the other vehicle.

 

The only issue is by the the time its payed off I want a new car, In fact its usually 2-3 years before its payed off. I was telling someone the other day I know I will always have a car payment so I might as well lease . I get bored with my car , although I love them so much. So I go in intending on keeping the car for 5 to 6 years but in reality ( with the last 3 cars) I dump them in 3-4 years. I think a good 36 month lease will be great, especially if I drop my payed off LS on top. The payment will be on the floor

 

it depends on the math and the situation

on both my ls460l and gs350, the way numbers worked out, leasing the car for 3 years and then paid off in cash, vs 3 years loan (apple to apple), the leasing option actually came out CHEAPER

 

interesting... Maybe i should look into leasing the next time...