Lease share of new-vehicle volume hit a record for the third quarter, barely beating a record set in the second quarter, as borrowers continue to rely on leasing and longer loan terms to offset record-high loan amounts, Experian Automotive said today.
For the third quarter, leasing accounted for 26.93% of new-vehicle volume, up just 1 basis point from 26.92% in the second quarter, according to Melinda Zabritski, senior director of automotive finance.
Leasing has generally been on the rise since bottoming out in the third quarter of 2009 at about 10% share, according to the Power Information Network. Experian Automotive didn’t break out detailed statistics for leasing back then. Leasing fell when auto lenders themselves were having trouble borrowing money and were reluctant to take chances on residual values.
In addition to record highs for leasing, the average amount financed also reached a new high in the third quarter for both new and used vehicles. For new vehicles, the average amount financed in the third quarter was $28,936, a 4.1% increase from a year ago. For used, the average amount financed was $18,866, up 1.6%, Experian Automotive said.
The average monthly payment increased 2.6% for new vehicles to $482. For used, the average monthly loan payment was $361, up 0.8%. The average new-vehicle loan term was 67 months; for used vehicles, the average was 63 months. Both were up one month from a year ago.