US car leasing share falls to 23% as rates rise and inventories tighten

Vehicle leasing in the United States has declined sharply, dropping from about 30% of new‑vehicle sales before the pandemic to a low of 17% during post‑pandemic shortages. In the first half of 2026, leases accounted for only 23% of new‑car deals.

Automakers have reduced the availability of cheap lease offers, citing tighter dealer inventories after the 2021‑2023 chip shortage and higher interest rates. As a result, monthly lease payments have risen by several hundred dollars. "The customer still has a desire to lease," said New Jersey General Motors dealer David Ferraez, "the big challenge is getting the customer to accept the much higher payment."

The tighter leasing market has contributed to a broader affordability crunch, prompting some buyers to extend financing terms to as long as seven years. While lease payments remain lower on average ($650 per month versus $800 for financed purchases, according to JD Power), industry analysts note they are "nowhere near as good as they used to be," said Ivan Drury, director of insights at Edmunds.