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Auto Leasing 101


1. Some Facts about Leasing 5. Your Lease Obligations and Responsibilities
2. Differences Between Leasing and Buying 6. End-of-Lease Considerations
3. Types of Leases 7. Your Options
4. Initial Lease Costs 8. Basic Advantages and Disadvantages

1. Facts About Auto Leasing

Leasing has exploded in recent years, with individual consumers accounting for the bulk of the increase. It has grown more than tenfold in less than a decade and now accounts for more than 35% of the 15 million-plus vehicles sold in the United States.

Why the dramatic upsurge in auto leasing?

A decline in the percentage of disposable savings of Americans and changes to the tax laws are the main causes. In 1987, more than 70% of disposable savings were available for the purchase of consumer goods.

By 1993 that figure had declined to less than 40%. This year, the percentage continues its downward slide. Additionally, the many tax deductions that favored purchasing over leasing were eliminated. Since those tax laws were changed, leasing has enjoyed a steady increase every year for the last ten years.


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