No two drivers are the same, and that reality is evident when motorists look for a new vehicle. Some drivers may want a flashy sports car, while others hope to get a great deal on a spacious minivan. Drivers also may be looking for different types of deals when visiting a dealership.
Leasing was once a gateway to a new car for millions of drivers. However, the automotive experts at Edmunds note that leases made up 18 percent of transactions involving new vehicles in the middle of 2022. That figure represented a 27 percent decline from a year earlier.
That decline could be a byproduct of several variables, including the value of trade-ins. Edmunds notes that the average trade-in value of cars leased in 2020 is 19 percent higher than the predetermined residual value, which means it makes sense for some motorists to purchase their vehicles at the end of a lease rather than turn it in. Despite the decline in leases, the option to lease can still make sense for some drivers.
With that in mind, individuals who are considering leasing can consider these factors to ensure they make the best decision possible. Trade-in value: As noted above, the value of trade-ins is very high. However, that value could be vulnerable to considerable fluctuations.
The spike in average trade-in values was related to supply-and-demand issues associated with the COVID-19 pandemic. Some of those issues have lingered, which means the supply of new vehicles is still lagging with some manufacturers. With fewe.
