According to Experian Automotive, US leasing deals have reached a new high during the first quarter.
Experian says that leasing deals accounted for 27.5% of all new vehicles financed during the first quarter, up 3.1% compared with the same period last year and the highest level since 2006.
“Leasing is definitely back,” said Melinda Zabritski senior director of Automotive Credit with Experian. “People want the lowest monthly payment possible for a new car or truck and many times they can get that with a lease.”
Although the amount financed by auto loans jumped with $620 to $26,648 in the first three months, consumers still managed to keep their monthly payments in check. Experian says that during Q1 the average monthly payment for new vehicle loans was $459, down $3 from the same period last year. Consumers managed to keep monthly payments for climbing, by increasing the period of time for their auto loans. In Q1 the auto loans between 73 and 84 months increased 27.4%, accounting for 19.5% of all new vehicles financed.
“Loans of six plus years have become extremely popular, especially those that are 75 months,” said Zabritski.