Auto Leasing at Record High in U.S.

Last year U.S. consumers leased a record 4.3 million vehicles—31% of retail market volume, reports Edmunds.com.

The online shopping service says leasing volume zoomed 91% over the past five years. One reason: On average, an average lease payment is $120 lower per month than the cost of financing the outright purchase of the same vehicle.

Edmunds’ annual lease market report notes that luxury brands continue to account for the bulk of leased vehicles. But the leasing is spreading into trucks and big SUVs. Millennials—many of them first-time buyers—are the age group most likely to lease (nearly one-third did so last year). Consumers between the ages of 55 and 74 are the least likely (28%).

Brand with the highest proportion of leases to overall sales last year were Infiniti (63%), BMW (58%), Lexus (55%) Audi (52%), Volkswagen (51%) and Mercedes-Benz (50%), according to the report.

Last year Michigan had the highest ratio of leases (64%). Arkansas has the lowest (2%). Leasing is most popular in the Northeast and least popular across the South.