New-Car Lease Prices Soar in U.S.

The cost of leasing a new vehicle, especially a sedan, has jumped in the U.S. by as much as 26% from prices three years ago, says Edmunds.com.

The online shopping guide blames rising sticker prices, higher interest rates and slumping residual values for conventional cars.

Those factors make a 36-month lease on the four-door Toyota Camry SE $2,800 more expensive than it was in 2016. By comparison, the lease price for a Jeep Grand Cherokee has grown only 4%.

Costlier leases on sedans may accelerate the collapse of that segment of the U.S. market by narrowing the price gap between sedans and far more popular SUV/crossovers, Edmunds says. It notes that the $1,700 difference between leasing a Honda CR-V crossover and Honda Accord sedan in 2016 has dropped to only $37 today.

Edmunds predicts that higher lease rates will force some consumers out of the new-car market and into a used vehicle.