An empirical examination of automobile lease vs finance motivational processes

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.