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Land Rover, Hyundai Poised To Make The Most Of Leasing Resurgence

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2011 Hyundai Sonata

2011 Hyundai Sonata

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2011 Land Rover LR4

2011 Land Rover LR4

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For those who simply like driving something new every few years, leasing can make sense—and it can allow image-conscious shoppers to drive a more expensive vehicle than they'd be able to buy.

But tighter control over credit had made those bargain captive-credit leases that many luxury-vehicle drivers had relied on for years considerably tougher to find these past couple of years, especially if you have blemished credit.

The leasing market is poised to bounce back, though. According to ALG, which calculates residual values—the amount of a vehicle's original value it's estimated to retain after several years—stronger used-vehicle values and a low supply of used vehicles over the next year, combined with low interest rates and an easing of credit requirements, will make leasing a more attractive option again.

Leasing options are expected to be on the increase through 2015, predicts ALG, with leasing gaining nearly 43 percent of the luxury market by next year and 17.5 percent of the general market over the next couple of years.

Thanks to strengthening residual values and increasing market share, Hyundai is expected to gain the most in the leasing market over the next several years, while Land Rover will make the biggest lease gains in the luxury segments, the company anticipates.

Here are ALG's luxury brands with the highest residual values:
1. Land Rover
2. Infiniti
3. Acura
4. Audi
5. Lexus

And the mainstream brands with the highest residual values:
1. Mini
2. Subaru
3. Mazda
4. Honda
5. Hyundai

[ALG]

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Comments (2)
  1. Confusing logic in this story. Something is left out. The article asserts that leasing will increase and the companies with the highest resale will benefit the most. It singles out Hyundai as the winner and yet a list of highest resale shows 4 competitors to have higher resale than Hyundai. The logic of the story would lead to the conclusion that lease increases will be led by mini, then subaru, then mazda, then honda and finally Hyundai. So why is Hyundai the winner? Is it that Hyundai sells the most cars out of the top 5 and even though they do not have the highest resale due to market share they will lease the greatest number? To come to a conclusion, we need to see the market share of each of those companies.
     
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  2. The article is saying that Hyundai is gaining ground on its competitors in this aspect. They "won" because a few years ago their residual value was horrible and now they beat most of the mainstream folks (Toyota, GM, Ford, etc.) and have a lot of potential.
     
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