Toronto, Ontario – Auto leasing is expected to rise in Canada beginning this year, according to auto data provider ALG Inc. The company projects the luxury sector to expand nearly 43 per cent over 2010, while leasing of mainstream autos will rise 26 per cent.
Numerous brands are expected to capitalize on this leasing resurgence, with highly competitive monthly lease payments. In order, the luxury brands with the highest residual values in the marketplace are Infiniti, Acura, Porsche, BMW and Audi. Among mainstream brands, the highest residual values are with Scion, Mini, Subaru, Honda and Toyota. Due to their improved residual values, Porsche and Volvo are expected to see the biggest gains in luxury leasing, while Mitsubishi and Chrysler are forecast for the mainstream segments.
“The combination of low used-car supply, a strengthening economy and improving new-vehicle inventories will not only contribute to higher new-vehicle sales but will create a positive environment for leasing over the next few years,” said Geoff Helby, Canadian regional director of ALG. “In addition, the creation of GM Financial earlier this year, which restored leasing on all Chevrolet and GMC models, and Mazda’s introduction of a new competitive leasing program will help to further stimulate the vehicle leasing marketplace.”