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Letter to the Editor
Friday January 3
Association of Consumer Vehicle Lessors Announces Consumer Vehicle Lease Volume Down 14.5% in 2002 -- Down 50% since 2000
New lease volume for the period Jan. - Nov. 2002 for the largest national lessors declined 14.5 percent from the same period in 2001 according to a survey conducted by The Association of Consumer Vehicle Lessors (ACVL). A prior ACVL survey of the full year volume change from 2000 to 2001 found a 40 percent drop. When combined, these surveys indicate that there has been about a 50 percent drop in lease volume since 2000.The results showed member lessors purchased 2.07 million leases for the same 2001 period compared to 1.78 million YTD in 2002.
Although the overall 2001/2002 decline was 14.5 percent, the average respondent's volume declined somewhat less, 10.5 percent. This would indicate that, on average, larger lessors had greater declines than smaller ones. Not all respondents had reduced volume: 29 percent of member lessors experienced an increase in volume averaging 25.6 percent.
Bank lessors saw their volume decline 19 percent, compared to 14 percent for manufacturer captive finance companies.
"There were a number of factors contributing to lower lease volumes," explained Rob Mize, ACVL President, "including the 0 percent manufacturer promotional loan finance rates and other very low interest rates, lower residual values (causing higher monthly payments), fewer manufacturer lease promotions, and the retraction of some bank lessor programs by withdrawing from some states and/or being more selective in approving lease applications."
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