Leasing grows in popularity as lenders ease credit standards

March 20, 2014 by Stacie Baker

The most recent Experian State of the Automotive Finance Market report shows more consumers are leasing vehicles. Leases accounted for 28.4 percent of all new vehicles financed in Q4
2013 – the highest level on record since 2006.

Lenders also are easing credit standards, as the average credit score for both new leases and loans decreased from the previous year. The change in credit standards gives consumers more financing options, but also means lenders need to consistently monitor both marketing and credit risk strategies.

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Experian Automotive report shows auto loans are still first choice in financing, but leasing has become more popular than ever.