Professor Elam

Monday April 28, 2014

More cars than ever are coming 'off lease.' Car companies have been offering leases on their products for a much lower monthly payment than if one had bought the car. The car company sells to a lease company. Leases grew in popularity as we came out of the recession. 

Now those cars are coming off lease. And there will be a lot of them. We study leasing in intermediate accounting. Here is an example of how expanding sales through leases can have an effect on later new car sales.