The impact of COVID-19 has significantly contributed to the growth of the Car Leasing Service market worldwide. Some critical factors, like lockdown and financial uncertainties, led to a shift in consumer preferences as a maximum number of individuals started opting for flexible transportation solutions with lower upfront costs.

As per the report by Global Market Insights, the Car Leasing market was valued at USD 615 million in 2022 and is estimated to register a CAGR of over 6% between 2023 and 2032.

Regarding car leasing services in the United States, according to Statista’s report, around one-fifth of all new cars in the US were leased around 2023. In 2021, 2.5 million trucks and 1 million vehicles were leased in the USA.

The US car leasing service market is seeing growth due to several factors, including advancements in technology, evolving consumer demands, increasing environmental awareness, the availability of affordable eco-friendly Electric Vehicles (EVs), and the need for flexible transportation solutions.

Through this blog, let’s examine the recent trends, challenges, and future scope of the Car Leasing industry in 2024.

Table of Contents

Latest Trends in Car Leasing Services

In 2024, the car leasing service industry will continue evolving, with several trends shaping its landscape in the US and globally.

Online Leasing Platforms

The trend of using digital platforms and apps for car leasing services is rising. Customers are leveraging the enhanced accessibility, digitalization, and convenience to lease used cars or new vehicles. These platforms allow customers to choose, browse, customize, and streamline leasing from the comfort of their homes. Also, customers looking for personalized assistance in their car leasing journey prefer to contact Car Concierge Pro, one of the leading car leasing companies in the United States & Canada.

Subscription-based Models

Car leasing services have recently started offering subscription-based plans for clients who want to lease the vehicles. These plans offer great flexibility and convenience to customers, allowing them to make monthly payments without getting stuck in long-term lease contracts. The monthly payments also include insurance maintenance fees and also provide the freedom to swap the vehicles.

Leasing of Electric Vehicles (EVs)

More and more people want to use eco-friendly transportation, and one popular way to do that is by leasing electric cars. Leasing an EV is a good option for people who wish to use sustainable transportation without spending too much money upfront. As per the report published in February 2024, EV sales in the United States have slowed to 25%, EV leasing rates have increased, and auto lease ABS rating performance has remained stable this year.

Integration of New Technology

Vehicle leasing can be improved even by including advanced technologies such as telematics, IoT, and AI. These technologies can improve the leasing experience by offering remote diagnostics, predictive maintenance, and personalized in-car experiences.

Millennials & Gen Z Customers

The car leasing industry is significantly influenced by the evolving preferences of younger generations, such as millennials and Gen Z. These individuals prioritize experiences over ownership and are drawn to flexible and technologically advanced leasing options, including subscriptions and integrated car services. A recent study by Cox Automotive shows that Nearly one-third of millennials chose to lease their car rather than buy in 2016. This age cohort made up 12% of all leases in the U.S.

Understanding the Challenges in the Car Leasing Industry

Supply Chain Disruptions

Especially during events like the COVID-19 pandemic, global supply chain disruptions pose challenges for the car leasing industry. Shortages of particular vehicle models, delays in vehicle production, availability of lease cars for sale, and other such factors impact the leasing companies. Such situations make it difficult for car leasing services to meet customer demands.

Market Conditions & Economic Factors

Various economic factors like interest rates, the spending behavior of consumers, and overall market conditions can impact the car leasing industry. These changes can affect the demand for car leasing services, making it difficult for providers to anticipate and adjust to market changes.

Regulatory Changes

Leasing companies must deal with regulation changes regarding emissions, safety, and consumer protection, affecting their pricing, lease terms, and day-to-day operations. It’s challenging to comply with these rules and stay competitive.

The Mobility Services Challenge

Car leasing companies are facing competition from other ways to get around, like ride-sharing, car-sharing, and bikes and scooters. These options are easy and convenient. So, it is challenging for car leasing services to provide attractive leasing options to customers to stay relevant and competitive in the rise of mobility services.

A Look Into the Future of Car Leasing Services

Rising Demand for Electric & Hybrid Vehicles

The increasing popularity of electric and hybrid vehicles is expected to surge the demand for EVs and hybrid vehicle leasing. With the growing demand for eco-friendly vehicles, car leasing companies will be able to capitalize on this trend by providing more options and attractive deals for EV leasing.

Personalized & Customized Mobility Services

Providing personalized and customized mobility services for the future is an excellent opportunity for car leasing companies to grow. Options such as on-demand leasing and subscription packages with additional services and services tailored to the individual’s preferences can make a difference. By doing so, they can attract more customers and boost their satisfaction.

Leasing with Car Concierge Pro

By overcoming the challenges in the industry, staying relevant to the current trends, and negotiating the best deals for the customers, Car Concierge Pro stands as one of the top 5 car leasing, buying, and selling companies in the United States and Canada.

Until now, the company has served over 500 customers with specific demands, out of which 150+ customers chose Car Concierge Pro to lease their vehicle.

The Best New Car Lease Deal by Car Concierge Pro

Volvo XC 60- Negotiated $660 to $599, 12K Miles for 36 Months

Overall Savings on the Total Out-the-Door (OTD) Price- $5491

Customer Testimonial

🌟🌟🌟🌟🌟 Google Review by Frederico Hexsel.

I can’t express enough how thrilled I am with the exceptional service I received from Shainit at Car Concierge Pro. Shainit went above and beyond to help me save over $5000 for my purchase; I had a 2021 XC60, which I wanted to upgrade to a newer one. Their dedication and tireless negotiation with multiple dealerships resulted in the perfect match for exactly what I was looking for.

The experience was not only cost-effective but also stress-free. Their knowledge and expertise in the automotive industry are truly remarkable. I couldn’t have asked for a better ally in my car-buying journey.

I will wholeheartedly recommend Car Concierge Pro to people in my network. They are a fantastic business that genuinely cares about their clients and their satisfaction. If you want to save money and have a smooth car-buying experience, Car Concierge Pro is the way to go. Thank you, Shainit and team, for making my car purchase an outstanding one!

Conclusion:-

The Car Leasing Service industry is rapidly expanding, driven by changing consumer preferences, technological advancements, and increasing environmental consciousness. The trends of online platforms, subscription-based models, and the integration of new technologies are leading to a shift in the landscape of car leasing services, catering to the needs of millennials and Gen Z customers who prioritize flexibility and sustainability.

However, the industry also faces challenges like supply chain disruptions, economic factors, regulatory changes, and competition from alternative mobility services. Despite these factors, the future of car leasing services holds promising opportunities, particularly in the increasing demand for electric and hybrid vehicles and the customization of mobility services.

Derek Koloditch

February 27, 2024.

I recently purchased a used 2017 Subaru Outback Limited via Car Concierge Pro. The experience was definitely a positive one overall. As someone who purchases a car once a decade or so, I simply do not trust dealerships. They have a variety of tactics to hide the truth about pricing and vehicle history to squeeze every penny from you. Services like Carvana and Carmax charge more for negotiation-free purchasing (shouldn't it be the other way around?) and up-sell you on warranties, Either way, you’re at a disadvantage. So I went looking for an alternative and ran across the concierge option. I chose Car Concierge Pro because pricing and payment are straightforward, and they're technologically more up to speed than their competitors. Everyone on the team assigned to me was very friendly, helpful, and accommodating. My experience was more of a collaborative effort with quite a bit of back and forth around searching, researching, and negotiating. The team was with me every step of the way, handling all the legwork or providing guidance and assistance as necessary. You can be as hand-off or hands-on as you like. If you want to handle searching yourself and let them handle negotiations, you can do that too. Here are some helpful learnings if you decide to go the same route. 1) Try to research models and narrow down what you're after ahead of time. Best model years, common failures, expected repair costs (Consumer Reports, CoPilot, and ChatGPT were very helpful), regional pricing trends (see Auto Tempest). This isn't a requirement, but I personally found it to be helpful. Doing so will help your team hit the ground running and alleviate some stress for you early on. Of course, they’re there to help you dial in on your preferences as well. And keep in mind things may evolve and shift as part of the process. As an example, I focused on the 2019 and later model of Subaru Crosstrek PHEV initially before realizing battery replacement would be a huge hidden expense for very limited range. I discussed this with my team and we pivoted accordingly. 2) Keep your eye on the details. Dealerships might say one thing and do another, or they'll inflate the numbers in one area (like optional packages) to give the illusion of a deal. They might even take favorable photos to hide flaws (like a cracked front bumper on one of the listings I picked). Your team will be very vigilant for these tactics, but it doesn't hurt to be redundant if you're inclined to. For obvious reasons, dealerships do not like dealing with concierges, so they might try and sneak things past them if they realize who they’re dealing with. Your team will reiterate this before closing the deal and signing any papers. 3) Use Lemon Squad for pre-purchase inspections. Ordering an inspection from their site is dead simple, especially compared to their competitors. You'll get photos, video, diagnostic scans, a test drive, and a report, which you can share with your team or knowledgeable friends / family for feedback and use to negotiate further. Better pricing might be available via a local mechanic, but for remote inspections, Lemon Squad is the way to go. As of this writing, pricing starts at $220. You probably don't want to pay for more than two inspections (the money adds up quickly, obviously), so use them once you're ready to commit to a vehicle assuming everything looks good. 4) Use a reasonable search area and adjust accordingly. The wider the search area, the better range of pricing and deals. One caveat is that shipping can get pricey and cut into your savings the further out you go. My suggestion is to stick within a 1000 mile range initially. If you find a good deal on the edge of that range, it might be cheaper to fly out to pick up the car and drive it back. A 16 hour drive is much more doable than a 26 hour drive. All in all, I’ll be going this route again in the future when the time comes. The options + savings are better and it alleviates a notable degree of stress from a generally unpleasant experience. And I can’t recommend Neel and his team enough.

Joseph Flint

February 21, 2024.

I had a very good experience with Car Concierge Pro. Shainit and the gang kept me informed every step of the way, found the car I was looking for and helped me sell my car. Everything was smooth and they were always accessible for questions, etc. Very glad for their firm and strongly recommend.

Jacob Palecki

February 5, 2024.

The team was very diligent and responsive, made the process very easy. Thank you!!

Kalp Parikh

January 23, 2024.

I used them for selling my car. They are amazing to work with right from beginning to end. I got a very nice deal for my car all thanks to the staff!

Daniel Brouder

December 10, 2023.

Shainit did a great job. Service was worth it. He found a car for me 100 miles away when multiple dealers told me there were no models available within 400 miles, and my only alternative was to order this model from factory, which would take a few months and the price was not guaranteed. Appreciate Shainit’s assistance. Thanks

Car Leasing Service: Growth, Trends, Challenges & Future Scope in 2024

Latest Trends in Car Leasing Services

Understanding the Challenges in the Car Leasing Industry

A Look Into the Future of Car Leasing Services

The Best New Car Lease Deal by Car Concierge Pro

Conclusion:-

Neel Mehta

Bhavya Mehta

500+ clients served.
$2,500,000+ saved.

or Call Us at

+1 (480) 418-6390

Serving nationwide across United States and Canada

Our fiduciary responsibility is for our clients. We do not promote any specific cars and negotiate every deal with complete honesty and integrity. We keep clients' preferences at the forefront - cost savings and convenience.

Latest Trends in Car Leasing Services

Understanding the Challenges in the Car Leasing Industry

A Look Into the Future of Car Leasing Services

The Best New Car Lease Deal by Car Concierge Pro

Conclusion:-

Neel Mehta

Bhavya Mehta

500+ clients served.$2,500,000+ saved.

or Call Us at

+1 (480) 418-6390

Our fiduciary responsibility is for our clients. We do not promote any specific cars and negotiate every deal with complete honesty and integrity. We keep clients' preferences at the forefront - cost savings and convenience.

500+ clients served.
$2,500,000+ saved.