Market Overview

According to the Japan Automotive Leasing Association, the number of personal lease vehicles was 671,404 units at the end of March 2024 (the end of fiscal year 2023), 115.4% of that in the previous year. While corporate car leasing, which accounts for over 80% of the automotive leasing market, has leveled off or experienced a slight increase, growth of personal car leasing is driving the overall market.
Personal car leasing companies face severe competition, as some offer a wider variety of products, which include plans that allow midway cancellation, while an automaker-affiliated company has announced plans to offer subscription-dedicated grades. Meanwhile, a growing number of vehicles are being returned to leasing companies due to contract expiration, indicating the need to increase contract retention rates.

Noteworthy Topics

Survey of Personal Car Leasing and Automotive Subscription Service Users

An online consumer survey was conducted in February 2025 among 400 male and female users of personal car leasing or automotive subscription services nationwide, ranging in age from their 20s to 60s.
According to the survey results, an automaker affiliate was the service provider with the largest user base. The number of online contracts has increased since the last survey in March 2023.
Although the number of users of personal vehicle leasing and automotive subscription services is on the rise, most respondents indicated that they did not understand their contract types or residual payment status. These user perceptions may give rise to future problems regarding residual payments.
The survey also revealed that many users are pleased with the financial advantages and the elimination of complicated procedures, as they cited the following reasons (multiple responses) for using these services: simpler or no procedures needed for tax payments and regular automotive inspections; lower initial costs; and easier spending management due to equal monthly payments.

Future Outlook

In FY2024, the domestic personal car leasing market is expected to increase by 12.6% year over year, reaching 756,000 units based on the number of personal lease vehicles. This growth is driven by prolonged issues with certification test irregularities associated with type designation applications and delivery delays of certain vehicle types.
Considering new car sales, the lease ratio for vehicle purchases, and the length of lease contracts, the number of domestic personal lease vehicles is projected to reach one million by the end of March 2027, or at the end of FY2026.

Research Outline