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Leasing Continues to Decline in Q2 2022 Amid Inventory Shortages

Published: September 7, 2022 by Melinda Zabritski

Full length of woman standing amidst cars in showroom

Leasing has long been a popular choice among consumers who want to enjoy the latest vehicle models, but at a lower monthly payment. In fact, the average monthly lease payment was $127 less than a loan payment in Q2 2022. However, in recent quarters, we’ve seen leasing availability decline due to current market conditions.

According to Experian’s State of the Automotive Finance Market Report: Q2 2022, leasing declined from 27.82% to 19.65% year-over-year, marking the lowest drop in quite some time. When analyzing previous data, leasing comprised 30.41% of all new vehicles in Q2 2018, decreasing to 30.04% in Q2 2019 and 26.58% in Q2 2020.

There are likely a number of factors contributing to the decline of leasing over recent years, including the ongoing inventory shortages and OEMs not offering as many incentives, which may result in leasing opportunities becoming less common. Other scenarios can be consumers choosing to extend their lease, or purchase the vehicle once their lease has expired.

In Q2 2022, the average monthly lease payment increased to $540, from $475 in Q2 2021. Though, the average monthly loan payment for a new vehicle surpassed $600 this quarter—coming in at $667, an $85 year-over-year increase.

As automotive professionals continue to navigate through the inventory shortages and subsequent vehicle price increases, understanding the landscape and what options are available for consumers will be critical. One way to keep on top of the trends is analyzing the pricing options for the most popular leased models, which will enable more informed decisions in the months to come.

Average monthly payment for top leased models

As previously mentioned, there was an average payment difference of $127 between a lease and a loan in Q2 2022. However, that’s just an average, and these numbers can vary based on the vehicle type. For example, the average monthly lease payment for a Honda Civic was $363 in Q2 2022, as opposed to the average monthly loan payment of $476. In comparison, the average monthly lease payment for a Ford F-150 came in at $516 this quarter, compared to the average monthly loan payment of $832.

While a pickup truck may typically have a higher average monthly lease payment than a sedan, consumers are continuing to choose larger vehicles, overall. In Q2 2022, there was only one sedan that made up the top leased vehicles—with the Ford F-150 having the highest leasing registration volume, comprising 2.3% this quarter. Rounding out the top five were Chevrolet Equinox (2.27%), Honda CR-V (2.16%), Honda Civic (2.09%), and Ram 1500 (1.81%).

Despite the overall decline in leasing over the past year, it continues to be a financing option that consumers can consider amid vehicle prices increasing. Knowing what vehicles are most prevalent as well as their price points will allow professionals to create strategies that cater to the most current consumer financing preferences during their search for a vehicle that fits their needs.

To learn more about leasing and other automotive finance trends, watch the entire State of the Automotive Finance Market: Q2 2022 presentation on demand.

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Amid interest rates leveling out and some lenders reassessing go-to-market strategies, the automotive finance landscape is experiencing notable shifts in market share. According to Experian’s State of the Automotive Finance Market Report: Q1 2025, banks recouped some of their total finance market share for the first time in several years, reaching 26.6% during the quarter, up from 24.8% a year ago. On the other hand, captives’ total market share declined from 31.3% to 29.8% year-over-year and credit unions experienced a modest increase from 20.2% to 20.6%. Despite the overall market share shifts, captives continue to lead in new vehicle financing at 57.1% in Q1 2025, although down from 62.1% the year prior. Meanwhile, banks increased to 24.1% this quarter, from 20.4% in Q1 2024 and credit unions went from 9.6% to 10.9% during the same period. On the used side, banks and credit unions were grouped much closer together. Banks led the way with 28.4% of the used finance market in Q1 2025, up from 27.9% last year, while credit unions went from 27.7% to 28.2% year-over-year and captives declined from 8.5% to 7.4%. As market share movement continues to be a valuable indicator of shifting strategies and consumer behavior, it’s important for automotive professionals to keep a close eye on these shifts to uncover new opportunities while looking for ways to stay ahead of the rapidly evolving industry. Breaking down the latest finance trends Data in the first quarter of 2025 shows the automotive finance market continues to stabilize as automotive professionals gain clearer visibility into lender behavior and consumer demand. For example, the average loan amount for a new vehicle increased $1,110 year-over-year to $41,720 in Q1 2025. However, the average interest rate dropped from 6.9% to 6.7%, and the average monthly payment went from $737 last year to $745 this quarter. For used vehicles, the average loan amount saw a slight uptick of $90 year-over-year, reaching $26,144 this quarter. Meanwhile, the average interest rate declined from 12.4% last year to 11.9% this quarter and the average monthly payment trended lower at $521, from $524 in Q1 2024. Monitoring and leveraging market share shifts and financing trends can support strategic planning while empowering automotive professionals to anticipate consumer purchasing patterns and tailor conversations more effectively to meet buyers where they are during their car buying journey. To learn more about automotive finance trends, view the full State of the Automotive Finance Market: Q1 2025 presentation on demand.

Published: June 5, 2025 by Melinda Zabritski

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Quick Summary: Leasing continues to increase in the electric vehicle (EV) market. EVs accounted for nearly 20% of all new vehicle leases in Q4 2024, up from only 2.11% of new vehicle leases four years ago in Q4 2020. With consumers looking for flexibility—both in monthly payment and model availability—we’re seeing leasing continue to surge in the electric vehicle (EV) market. According to Experian’s State of the Automotive Finance Market Report: Q4 2024, EVs accounted for 19.5% of all new vehicle leases this quarter, up from 11.7% last year and a substantial increase from 2.1% in Q4 2020. Diving a bit deeper, data found EVs accounted for 9.3% of all new purchases in Q4 2024. Of those EVs, 50.1% were leased, while 38.9% were financed through loans. With lease payments for EVs ultimately being more affordable compared to loans and the excitement of driving the latest models packed with advanced technology, it’s no surprise we’re seeing leasing grow in popularity. Top leased EVs: How do lease and loan payments compare? As more consumers transition to EVs and manufacturers introduce new options to their lineup, certain models have become top choices for those opting to lease. Tesla accounted for the top two leased EVs in Q4 2024, with Tesla Model 3 coming in at 12.2% and Tesla Model Y at 9.1%. However, the Honda Prologue followed closely at 8.8% this quarter. Rounding out the top five were Hyundai IONIQ 5 (6.9%) and Chevrolet Equinox EV (5.9%). It’s notable that leasing has traditionally been a value-driven option for consumers, and the same holds true in the EV market. Leasing continues to offer lower monthly payments, making the finance option stand out for those looking to test an EV before purchasing or simply wanting the latest model on the lot. In Q4 2024, the average payment difference between a loan and a lease was $175. Though, the average monthly payment to lease a non-luxury EV was $504 this quarter, noting a $205 difference compared to the $709 loan payment. By comparison, the average monthly payment between a loan and leased luxury EV was $98—coming in at $842 for a lease and $940 for a loan. As more consumers choose to lease EVs, automotive professionals in both new and used markets have a chance to capitalize on this trend. By leveraging this data, those in the new retail market can effectively reach the right audience, while those in the used market can stay ahead of the curve and prepare for the influx of off-lease models in the coming years. To learn more about automotive finance trends, view the full State of the Automotive Finance Market: Q4 2024 presentation on demand.

Published: March 6, 2025 by Melinda Zabritski

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