June 25, 2024
News

Lenders facing increased costs due to rise in leasing trend

Leasing volume has been steadily increasing, which may present challenges for lenders. According to Kyle Birch, president of North American operations at GM Financial, leases are becoming more costly for lenders. During a keynote address at the Non-Prime Auto Financing Summit, Birch noted that leasing is making a comeback, though not as quickly as anticipated.

FAQ

Q: Why is leasing volume increasing?

A: The increase in leasing volume can be attributed to various factors such as changing consumer preferences, economic conditions, and promotional offers from automakers.

Conclusion

Leasing is on the rise, posing potential financial challenges for lenders. As leasing becomes more popular, lenders will need to carefully assess the risks and costs associated with leasing agreements. Stay tuned for more updates on the evolving landscape of auto financing.

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