Leasing has plunged since 2007 but is on the upswing and will continue to rebound this year, analysts and financial institutions predict.
GMAC Financial Services said lease volumes rise and fall depending on how much subvention cash manufacturers are willing to invest in their programs. GMAC "expects leasing may double in 2010 but will not reach levels seen prior to 2008," GMAC said in a statement.
Through February, GMAC supported incentivized lease programs on 14 General Motors Co. and nine Chrysler Group vehicles.
GMAC and other financial institutions halted or pulled back on leasing in late 2008 when they suffered heavy losses associated with a sharp depreciation of resale values for vehicles coming off lease, escalating loan defaults and soaring costs for funds.
GMAC resumed leasing last year.
An industrywide shortage of used cars and trucks is lifting resale values of vehicles coming off lease, making it more attractive for auto companies and financial institutions to get back into leasing.