“With the average loan amount for new and used vehicles hitting all-time highs, we are seeing the need for affordability drive consumer purchasing behavior,” said Melinda Zabritski, Experian’s senior director of automotive finance. “Our latest research shows an $11,000 gap between the average loan amount on a new and used vehicle – the widest we have ever seen. This upward trend is causing many consumers to find alternative methods like extending loan terms, getting a short-term lease or opting for a used vehicle to get what they want while staying within their monthly budget.”
For consumers who still want to drive something new, leasing a new vehicle costs an average of $92 less per month compared with financing. The average monthly payment for a new leased vehicle is $414, versus $506 per month for a new vehicle purchase. The number of consumers who chose to lease a new vehicle increased slightly from 28.87 percent in Q4 2015 to 28.94 percent in Q4 2016.
Other key findings for Q4 2016:
- The average monthly payment for a new vehicle loan was $506, up from $493.
- The average new vehicle lease payment was $414, up from $412.
- The average monthly payment for a used vehicle loan was $364, up from $359.
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