Auto Leases Are a Growing CU Business
As the prices for new and used cars edge higher, more consumers are opting to ride off the dealership’s lot in a leased vehicle.
According to Equifax and Moody’s Analytics’ CreditForecast.com, total auto lease balances increased 9% in March over activity in March 2011. That percentage was more than twice the growth rate of auto loan balances, which grew 4.2% during the same period.
Following a first-quarter sales boom, vehicle sales held steady during April, said David Carrier, NAFCU chief economist and director of research.
“The mild winter months likely captured some sales from the spring, and the fact that sales figures did not deteriorate in April reflects the strength of pent-up demand in the market,” Carrier said. “The mix of purchases has been heavily swayed by gas prices.”