U.S. Lease Sales Set Record in February

A record one-third of passenger cars and light trucks sold in the U.S. in February were leased, according to market analysts J.D. Power.

Last year 28% of new-vehicle sales in the U.S. were leased. The proportion in January was nearly 32%. Power says the upswing reflects customer desire to reduce monthly car payments.

In the meantime, the volume of off-lease vehicles entering the used-car market is growing rapidly. Used-car auctioneer Manheim Inc. estimates the number of cars coming off lease in the U.S. will jump 20% to 3.1 million units this year, then climb to 3.6 million in 2017 and 4 million in 2018.

This year’s expanded used-car pool will reduce the average used-car price by 3%-4%, according to Power. Falling used-car prices put pressure on new-car prices and are likely to squeeze new-car margins for the first time since 2008, the firm predicts.