Auto financing update–leases set new record

As new vehicle prices continue to rise, more consumers are turning to leasing as a cost-effective auto financing option.

Findings from the most recent State of the Automotive Finance Market report show that the average lease payment for Q4 2015 was $412 (versus the average loan payment of $493). Not surprisingly, due to the fact that most consumers tend to finance vehicles based on monthly prices, leasing reached a record high, accounting for 33.6% of all new financing during the quarter.

Lenders can design more effective strategies by using analytics to gain insight into the latest trends and to target the right customers for automotive leases and loans.

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