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Leasing helps boost new car sales

By Tara Baukus Mello · Bankrate.com
Saturday, July 20, 2013
Posted: 6 am ET

New-car registrations are at the highest rate in at least the last five years, according to Edmunds.com, and a new surge in leasing is the likely reason. According to an Edmunds.com analysis of car registration data from Polk, new cars accounted for about 29 percent of all auto sales from January through May 2013, putting it on pace to top last year's high of 27.6 percent. Edmunds.com found that 25 percent of the new cars sold this year were leased -- a big jump from last year's rate of 22 percent.

A survey conducted recently by SwapALease.com also noted increasing interest in car leases. About 66 percent of the survey respondents said they were "extremely likely" or "likely" to lease their next car. Interestingly, about 61 percent of survey respondents are not currently leasing a car.

Automakers and dealers have increasingly been offering lease deals, since car leases count as sales, which helps boost their bottom line. Car leasing isn't it right for everyone, however. To determine if it's a good choice for you, read "4 factors to consider in car leasing."

Tara Baukus Mello writes the cars blog as well as the weekly Driving for Dollars column, providing both practical financial advice for consumers as well as insight into the latest developments in the automotive world. Follow her on Facebook here or on Twitter @SheDrives.

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