Key facts
- Vehicle leasing in the U.S. has declined since the pandemic.
- Pre-pandemic, leases represented 30% of new-car deals.
- As of early 2026, leases account for 23% of new-car deals.
- Automakers are offering less attractive leasing rates.
- Consumers are increasingly choosing longer financing terms.
- The decline in leasing impacts the used-car market.
Vehicle leasing in the United States has experienced a substantial decline since the COVID-19 pandemic. Pre-pandemic, leases accounted for 30% of all new-car deals, but this figure has fallen to 23% as of early 2026. Automakers are reportedly offering less attractive leasing rates to consumers. This change in the market is leading consumers to seek out longer financing terms for new vehicle purchases. The reduced availability of off-lease vehicles is also having a notable impact on the used-car market, as fewer vehicles are returning to dealerships through lease buybacks or trade-ins.
The trend away from leasing is a direct consequence of automakers' strategies to manage inventory and profitability in a post-pandemic environment. With higher interest rates and increased vehicle prices, the cost-effectiveness of leasing has diminished for many consumers. Consequently, buyers are increasingly opting for financing plans that extend over longer periods, such as 72 or 84 months, to keep monthly payments manageable. This shift has implications for vehicle depreciation and the overall health of the automotive financial ecosystem.