(March 3, 2011) SANTA BARBARA, Calif. (PRNewswire) — ALG, the industry benchmark for residual values and depreciation data, today announced that it expects a significant resurgence in the automobile leasing market in 2011 that will continue through 2015.

The luxury market is predicted to lead the charge with a lease penetration rate of nearly 43 percent by 2012, while lease penetration in the mainstream market will increase to 17.5 percent over the next two years.

Numerous brands are expected to capitalize on this leasing resurgence, based on the ALG 2011 March/April edition and current high residual values forecasts, which allows them to offer highly competitive monthly lease payments.  The luxury brands with the highest residual values ranked from one to five are: 1. Land Rover, 2. Infiniti, 3. Acura, 4. Audi and 5. Lexus. The mainstream brands with the highest residual values ranked from one to five are: 1. Mini, 2. Subaru, 3. Mazda, 4. Honda and 5. Hyundai.

As a result of their improved residual values over the past year, Land Rover is expected to see the biggest gain in leasing in 2011 in the luxury brand category, while in the mainstream brand segment, Hyundai is forecasted to realize the biggest gain in lease deals in the coming years. 

The forecast also found that the residual gap between brands continues to shrink, indicating an increasingly more competitive leasing landscape for both the luxury and mainstream markets. 

"What we expect to see for the next several years is a very positive environment for leasing due to low used vehicle supply resulting in stronger used vehicle values, historically low interest rates and an easing of credit requirements as the overall economic recovery begins to take hold," said Eric Lyman, director, Residual Value Solutions for ALG. 

"As a result, leasing is emerging as an excellent option for dealers looking to move inventory and for buyers eager to get into new vehicles at competitive prices."