Consumer Vehicle Lease Volume Up 5% in 2004

NASHVILLE, Tenn., March 8 -- New lease volume for the largest national lessors increased 5% from 2003 to 2004 according to a survey conducted by The Association of Consumer Vehicle Lessors (ACVL).

The results, announced today, showed member lessors purchased 1.69 million leases in 2004 compared to 1.62 million in 2003. This small increase is a good sign that leasing is once again growing after five years of decline since the high water mark in 1999.

However, the increased volume went entirely to manufacturer captive finance companies, which saw their lease volume grow by 9%. Bank lessors, on the other hand, saw their volume decline 17%. See Exhibit 1.

                                Exhibit 1
                     2003 vs. 2004 New Lease Volume
                                                              Avg.
                                                           Unweighted
                       2003        2004   #Diff.  %Diff.   Diff.      N
  All Respondents 1,617,352   1,691,854   74,502      5%     -4%     16
  Banks             286,343     236,719  -49,624    -17%    -23%      7
  Captives        1,331,009   1,455,135  124,126      9%      9%      9

Though in recent years the attention of consumers and dealers has shifted away from leasing, consumers are again realizing the variety of leasing advantages including:

-- Protection from continued volatility in used car prices and the possibility of unexpected depreciation;

-- Avoidance of the hassles of negotiating a trade-in value when the consumer wants a new vehicle;

-- Reduced sales tax in most states since the tax is only paid on the lease payments rather than the full price of the vehicle.

Consumers looking for further information on whether leasing or financing better meet their needs should visit the ACVL "Leasing vs. Buying Quiz" and the accompanying "Leasing vs. Buying" comparison. See ACVL.com.

The ACVL was founded in 1993. Based in Nashville, Tennessee, the ACVL is a national trade association for the largest manufacturer and import distributor captive finance companies, banks, and independent leasing companies whose primary goals include increasing consumer understanding of lease benefits and responsibilities through improved disclosure.