After rocketing past the 20-percent mark for much of the winter, the leasing market made a “reversion back to normal levels” during March and the first few weeks of April, according to J.D. Power and Associates senior director Thomas King, who shared some insight on Friday with Auto Remarketing about the leasing trends spotted through April 24.

J.D. Power indicated in its latest Industry Health Review that the month’s lease penetration rate through April 24 was 19.4 percent, which is 1.7 percentage points lower than the level reached in March.

This weakening continued the decline that started a month earlier when leasing levels dropped 2.7 percentage points sequentially, according to J.D. Power.

This decline, however, should be taken with a bit of perspective, though. King emphasized that it’s important to look at the long-term trends and stressed that April’s level is “still relatively high given the preceding 12 months.”

And he went on to point out that there were some “unusual events” in the first quarter that pushed leasing rates to rather escalated levels. The leasing rate came in at 20.2 percent in January and 23.1 percent in February. These gains followed a December where leasing hit the 21.6-percent mark.

Again, the slightly lower levels in March and April have been a function of the market returning a bit more normal levels, J.D. Power revealed.

Moreover, overall industry incentive levels in April dropped 12 percent sequentially and showed a year-over-year decline of 13 percent. King also stressed that he believes currently there is a “good balance of cash-finance and lease offers (in incentives).”

Moving along, King also highlighted a few newer leasing trends he spotted.

He indicated that there is “some evidence of gas-price effects.” For instance, large pickup lease penetration was down 15 percent month-over-month, as it came in at 5 percent.

Compact conventional models, meanwhile, are up 5 percent sequentially to 25 percent.

“The more fuel-efficient (vehicles) are strong,” he noted, adding that the strength also corresponds with new vehicles being rolled out in the smaller segments.