Happiness is a 3-year lease

Leasing a car used to be just for the wealthy—or for those who wanted to look the part. Now it has gone mainstream.

Indeed, 23 percent of all vehicle transactions last year were leases, according to the most recent industry data. More car shoppers are discovering that leasing works for satisfying Mercedes tastes on a Mazda budget.

And people who lease seem generally pleased with their decision, according to Consumer Reports' latest Annual Auto Survey, tallying more than 46,845 leased new 2011-15 model year vehicles driven by our subscribers.

We also found, in a follow-up survey regarding 11,215 leased vehicles, that more than half of drivers who are currently leasing also had leased their previous vehicle.

What's more, experienced lessees are far more brand-loyal than other drivers. About 65 percent of lessees in our survey stayed with the same brand when they signed their current lease. "That's double the amount of those who financed or bought their last car," said Simon Slater, Ph.D., Consumer Reports senior research associate.

Leasing is gaining in allure because shoppers can get a more expensive vehicle for their money. (The reason: Monthly payments are tied only to the car's depreciation rather than to its entire value.) And lease-return programs lend themselves to drivers retaining the same brand because the lessee will need new wheels when the term expires. Also, automakers often offer great incentives.

But does leasing deliver more owner satisfaction than ownership or financing?

When asked a question about value, survey takers who lease are almost as satisfied as those who buy or finance their car.

"Seventy-one percent of those who paid in full were very satisfied with the value of their cars, compared with 69 percent of those who financed and 66 percent of those who leased," Slater said.

As for value, only Ram customers felt their lease was a better value than financing or paying in full. Still, it was a slim difference between lease and purchase customers who felt they got a good deal.

Regardless of whether they bought, ­financed, or leased their car, BMW and Land Rover drivers are the least satisfied with the value they get with their car. In addition, less than half of Land Rover lessees were very satisfied with the value they get from their car, the only brand to have such a low rating.

Although most automakers offer leases as long as 48 months, 81 percent of survey takers opted for a three-year lease term. Twelve percent opted for 24-month leases, and only 6 percent went for a 48-month term.

Automakers also have done a strong job of using their own captive finance companies to structure lease deals, with 83 percent ­arranged through the car company's finance arm.

Among lessees whose lease term has ended, 70 percent simply completed their term, 2 percent transferred their lease to another owner, and 28 percent terminated their lease for other reasons. Buying the car outright and trading for a newer or more upscale model were cited as two of the most common "other" reasons.

Another trend: A lot of paid-for miles are going to waste. Only 10 percent of those whose lease ended on time say their car surpassed the mileage limit detailed in their agreement. But 71 percent came in below the limit—in effect those drivers paid too much per mile for their leases.

So which brands satisfy the most? According to our survey, 51 percent of Lincoln lessees say they'll also lease their next vehicle. To be clear, that's to lease any car, not necessarily another Lincoln.

Dodge, Chrysler, BMW, Infiniti, and Mercedes-­Benz lessees all follow closely at or near 47 percent. Furthermore, Lincoln, Dodge, and Chrysler lessees are also among the most likely to definitely lease the same car model again (about 40 percent would).

But given past history of brand loyalty of lessees, automakers that make their customers happy in a lease stand a strong chance of retaining those folks the next time around—thus proving the adage that it's cheaper to keep an existing customer than it is to ­acquire a new one.