Leasing on the Rise
More consumers looking for ways to control automotive costs opt for the alternative as borrowing tougher.
Average monthly payments on leased vehicles fell for every segment of borrowers in the quarter.
Pexels/Vadutskevich
Vehicle leasing is on the comeback as consumers look for savings and dealers try to sell more cars in the still-inflated market.
Leasing increased from 21% to 25% year-over-year in the second quarter, up from 19% two years earlier, according to Experian data.
“As the influx of new vehicle inventory persists, a wider range of models are becoming available and dealers and manufacturers are leaning back into leasing as a way to move metal,” said Experian Head of Automotive Financial Insights Melinda Zabritski, who pointed out that leased vehicles come with lower monthly payments.
Average monthly payments on leased vehicles fell for every segment of borrowers in the quarter, according to Experian, which said the average payment was nearly $150 under that for a loan.
Leading leased models were the Honda CR-V, at about 3%, the Tesla Model Y close behind, and the Honda Civic at 2%.
Meanwhile, the average new-vehicle loan amount in the quarter was up from $40,743 to $40,927, while the average used amount fell from $26,316 to $26,248.
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