Where are Car Leasing Companies?

Do I have a choice in what company finances my car lease?

The world of car leasing in the U.S. has changed dramatically since before the Great Recession. Before, there were many independent car leasing companies, banks, credit unions, and others who were in the business of financing and leasing cars. Most have now disappeared.

Now, nearly all car leasing is done through new-car dealers who use their “captive” finance companies for all purchase and lease financing. These companies would include Ford Credit, Honda Financial Services, Toyota Financial Services, Hyundai Motor Finance, Nissan Motor Acceptance Corporation, and GM Financial, to name a few.

Some dealers use the financial services of a major regional distributor to finance loans and leases. One example is Southeast Toyota Finance, which is the financial arm of Southeast Toyota Distributors, which services all Toyota dealers in the Southeast U.S.. If you lease a car in Georgia, for example, you lease from Southeast Toyota Finance. In Texas, you would lease from Gulf States Toyota Distributors.

In some cases, dealers use large national banks such as Chase and Ally Bank as their financial partners.  Some dealers work with more than one financial partner, which can help in getting the best deal.

There are still a few local and regional banks and credit unions that handle primarily used luxury car leases for local independent used car dealers.

Summary

In summary, the days of being able to shop around for the best car lease financing deals is gone. The recession put most out of business. However, the captive finance companies that are owned by major car companies are able to put together “subvented” lease deals that are better than any independent car leasing company ever could. This is due to the fact that they are able to reduce prices, lower lease rates, and raise lease-end residuals, all of which is impossible for independent companies to duplicate.