CARY, N.C. — Lease subvention climbed more than 5 percent
year-over-year in September, which was the first increase in seven months,
according to Autodata Corp. data in the latest Guidelines report from NADA Used
Car Guide.

The report noted that this lease subvention increase
occurred even as overall finance subvention fell 4.7 percent, per Autodata.

And lease origination figures from recent months look pretty
solid, as well.

According to data provided to sister publication Auto
Remarketing on Friday by J.D. Power and Associates, the combined lease volume
for August and September exceeded 505,000 units.

This represents a 121,000-unit increase from the same period
of 2012.

As reported recently in Auto Remarketing's recap of a
conference call from Manheim chief economist Tom Webb, J.D. Power has
forecasted that there will be more than 3 million leases written for full-year
2013.

So far this year, lease volume has reached 2.17 million
units, according to the J.D. Power data. 

While lease penetration figures may differ from source to
source, numbers appear to be up from a year ago.

"The shift in the new-vehicle market has been increasing
skewed toward higher-income households," Webb said during his quarterly
conference call earlier this month. "That is a trend which will continue. I
believe these people like to trade on a short cycle and therefore leasing is
the preferred product for them.

"As a matter of fact, I strongly believe there more people
today in a very long retail contract that would have been better off in a lease
than people who are in a lease and should have been in a retail contract," he
added.

Joe Overby can be reached at joverby@subprimenews.com. Continue the conversation with SubPrime Auto Finance News on LinkedIn and Twitter.


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