An empirical examination of automobile lease vs finance motivational processes

Abstract

This research study explores the growing phenomenon of consumption without ownership by addressing individuals’ motivations for leasing, rather than financing, products. A two‐phase study was conducted in the retail automotive industry in order to ascertain motives for consumer leasing. It was found that while all hypothesized motives were predictors of the lease/finance decision (including desire for gratification and desire for social approval), two variables – desire for variety and desire for simplified maintenance – emerged as the best predictors of whether an individual chooses to lease or finance his/her motor vehicle. Implications for marketers and academicians are discussed.