Fewer Americans are leasing new vehicles because of higher prices and scarcity on dealer lots, a pullback that could crimp the supply of used vehicles and interested buyers in the coming years, the Wall Street Journal reported. The percentage of new cars and trucks leased during the COVID-19 pandemic has declined, dropping to 19% of overall retail sales so far this year through March 13 — the lowest since 2009, according to research firm J.D. Power. Leasing accounted for about 30% of the broader retail market in the years leading up to the health crisis, the firm’s data shows. The car shortage has prompted many auto makers to drop the discounts and other types of promotions they typically offer to make leasing attractive to car shoppers. “Buyers face sticker shock when they come out of one lease into another,” said Mike Maroone, chief executive of Maroone USA, which owns six dealerships in Colorado and Florida. In some cases, leasing a luxury model now costs about the same in monthly payments as financing one, spurring more consumers to buy out their existing leases or put their next vehicle lease on pause.
