Auto lease portfolios will take a beating at the hands of the coronavirus, but J.D. Because of that, it predicts lease portfolios will suffer up to $3.6 billion in losses this year. The potential results vary from substantial to truly troubling, depending upon how far used-car prices fall and how long they stay there. Instead, nearly equal percentages of auto leases end each month, and most leases are for 36-month terms. In other words, stabilized or climbing used-car prices will be a positive for finance companies holding auto leases.

Source: Forbes May 06, 2020 12:33 UTC