CARRUSLiNK

    Quick answer · Leasing operations

    What is a good lease renewal rate for a leasing company?

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    TL;DR

    A healthy lease renewal rate is 35-50% for private leasing and 50-65% for commercial leasing. Top-tier companies achieve 55-65% for private and 70%+ for commercial by running a structured T-90 expiry flow, using one shared system with the dealer, and offering 'next-car' proposals based on wishlists 60 days before expiry. The market average is 10-15 percentage points below top-tier.

    The lease renewal rate differs from pure renewal by including both 'same car again' and 'new car with us'. This is the metric that truly protects the portfolio, because a customer who switches to a new model with you generates the same lifetime value as one who extends.

    The three levers that lift the lease renewal rate from 30% to 55%+: early expiry flow (T-90, not T-30), wishlist-based 'next-car' proposals (matching against cars you already have or are returning), and a shared margin model between the leasing company and the dealer so it is someone's job to close the renewal.

    Key facts

    • Private leasing — healthy level: 35-50%
    • Private leasing — top-tier: 55-65%
    • Commercial leasing — healthy level: 50-65%
    • Commercial leasing — top-tier: 70%+
    • Biggest leverage: T-90 flow + wishlist-match + shared margin
    • CARRUSLiNK customers: +15-20 percentage points within 6-12 months

    See where your lease renewal rate can land with T-90 flow and wishlist matching.