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Leases growing as an auto financing option

Posted on Tuesday, June 9, 2015 at 8:26:21 PM

Consumers interested in new vehicles are increasingly turning to lease agreements in order to get those automobiles from the showroom to their driveways. 

Experian Automotive's State of the Automotive Finance Market report found that people are leasing new vehicles at a rate the information services organization has never seen before. In the first quarter of 2015, the number of automobiles leased made up 31.4 percent of all new vehicles financed through those three months. During the same quarter in 2014, 30.2 percent of all new automobiles financed by consumers were leased. Year-over-year, the average monthly payment on a lease dropped to $405 from $412. 

People haven't been leasing vehicles at this rate since 2000, according to Quartz. The nature of lease agreements have changed over time as well. While this sort of financing was once used almost entirely for luxury automobiles, people are increasingly leasing more affordable vehicles. In recent years, car prices have gone up, while lease agreements have grown cheaper than outright purchases. This is why so many people may be turning toward this sort of auto financing.