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Auto leases expected to increase in coming yearsPosted On Thu, April 26, 2012
While many American drivers are still purchasing vehicles, many are doing so with auto loans. However, a report from Equifax noted that over the next several years, many consumers could be switching to leases.
Auto lease balances rose 9 percent during March when comparing year-over-year figures, according to the report, which was jointly compiled by Equifax, Moody's Analytics and CreditForecast.com. This was much higher than the 4.2 percent increase in auto loans during the same period. Furthermore, auto lease balances are expected to rise by a rate of 8 percent through 2017. Auto loan balances are expected to jump by a rate of 2 to 3 percent during the same period.
"Auto finance companies have ramped up the number of leases they are providing to well-qualified borrowers with higher credit scores," said Amy Crews-Cutts, senior vice president and chief economist of Equifax. "Leases are growing in popularity in California, Florida and the Northeastern part of the country."
Drivers who are trying to save money when purchasing a new car may benefit from comparing a series of auto insurance quotes. By doing this, a person could find the best auto insurance rates for their specific situation, and may save a considerable amount of money.
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