The Effect of the Withdrawal of Automotive Leasing on the State of New York Economy

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The purpose of this report is first to estimate the effect of the withdrawal of automotive leasing on automotive retail sales in New York, and second, to evaluate the effect of the loss of the automotive leasing option on the overall state economy.

The Center for Automotive Research (CAR) commissioned two economists at Virginia Commonwealth University to estimate the effect of automotive lessor withdrawal on new vehicle sales in New York in 2003. Their study is included as an appendix to this report. CAR also commissioned the Institute of Labor and Industrial Relations (ILIR) at the University of Michigan to evaluate the effect of the elimination of automotive leasing on the New York state economy. The ILIR researchers incorporate the effect on sales from the Virginia Commonwealth study into their procedure to gauge the effect of the loss of the leasing option on the overall economy of New York.

This report was completed with the cooperation of the University of Michigan Institute of Labor and Industrial Relations.