Even as vehicle affordability constraints push shoppers out of the new-vehicle market, auto lenders are reluctant to combine the two segments that consumers and lenders are focused on — used vehicles and leasing.
The difficulty of predicting the depreciation of a used vehicle in a leasing program is seldom worth the risk, experts say.
Used vehicles represented 4.68 percent of the lease market in the first quarter, according to Experian's latest "State of the Automotive Finance Market" report, up from 4.1 percent a year earlier. For the last several quarters, lenders have financed about 40,000 used-vehicle leases, up from about 36,000 last year. Lease returns and dealership loaners make up most of the used-vehicle leasing market, according to Melinda Zabritski, Experian's senior director of automotive financial solutions.
"They could be current model-year vehicles that were used as loaners in the lane and then sold or leased as used vehicles. There's a lot of those," Zabritski said.
Despite the slight volume growth, originated mainly by captive finance companies and credit unions, Zabritski said used-vehicle leasing hasn't taken off.