June 18, 2007
44 per cent of Canadian new vehicle transactions are leases, says J.D. Power
Toronto, Ontario – More than 44 per cent of all retail new-vehicle transactions in the first five months of 2007 in Canada were leases, and the average length was 46 months, according to a report by J.D. Power and Associates.
The study found that BMW (including Mini) focuses more on leasing than any other company, with 68.9 per cent of its business in leasing, a rate 10 percentage points higher than any other manufacturer. The company also specializes in short-term leases, with more than 9 out of 10 leases between 36 and 41 months. Ford also has a high proportion of short-term leases, with more than half between 36 and 41 months.
Leases for seven other companies averaged between 48 and 53 months, with Volkswagen and Honda using these term lengths for more than 80 per cent of their leases.
For Hyundai and Kia, the most popular lease term has been 60 to 65 months. Mitsubishi averages the longest lease term at 67 months, with its most popular term at 84-to-89 months; however, the company does not focus on leasing, and fewer than one out of every 10 vehicles is leased, the lowest lease penetration among all automakers.