Auto analysts have been forecasting increases in off-lease units for the next few years, which is being supported by an Experian Automotive study. The Q3 2015 State of the Automotive Finance Market report says that leasing accounted for nearly 27% of all new vehicle transactions, up from 24.7% the previous year. Experian says that it marks the highest percentage of vehicles leased since the company began tracking the data publicly in 2006.
Here are other key findings from the Experian Automotive study:
- The report showed that the average monthly lease payment was $398 during the quarter, up $1 from a year ago.
- As new and used vehicle prices continue to rise, leasing has become a more viable finance option for consumers looking to make monthly payments. Leasing saves them an average of $84 per month rather than taking out a loan on new vehicle.
- During Q3 2015, the average amount financed for a new vehicle was $28,936, up $1,137 from the previous year. The average amount financed for a used vehicle was $18,866, up $290 over the same time period.
- The gap between new and used vehicle loan amounts also has grown. On average, consumers finance $10,070 less on a used vehicle than on a new one.
- The percentage of consumers who took out new and used vehicle loans with terms between 61 and 72 months reached all-time highs.
- Captive lenders have increased their presence on the market. In the third quarter of 2015, OEM financial arms financed 51.6% of new vehicle loans, up from 36.8% in Q3 2011.