Vehicle Leasing Declines in U.S. as Automakers Offer Less Attractive Deals
Leasing new vehicles has declined significantly among American car buyers since the pandemic, with lease deals accounting for just 23% of new-car sales in early 2026 compared to around 30% before 2020. One major factor is that automakers are offering less attractive leasing terms due to tighter inventory controls and higher interest rates. Monthly payments have increased substantially, making it harder for consumers to justify leases over traditional financing options. The shift away from leasing has contributed to a broader affordability challenge in the U.S., with some buyers opting for longer-term loans—some as long as seven years—to manage costs. Automakers had previously relied on lease deals to drive new-vehicle sales and maintain customer loyalty, but this strategy is now less effective due to higher prices and reduced incentives. Dealers are also feeling the impact of declining leases, which historically ensured a steady stream of returning customers. Higher monthly payments have led some buyers to switch brands or avoid leasing altogether.
Topics: automotive industry trends car leasing consumer affordability