Car Payments Now Average More Than $750 a Month. Enter the 100-Month Car Loan.

Leasing Decline Has Short-Term and Long-Term Implications

Leasing is an important financing option for potential shoppers in the new-vehicle market. New vehicles financed through an auto loan generally have a higher monthly payment. Thus leasing provides an affordable “bridge” to new vehicles for people who cannot afford to purchase outright.

Additionally, leasing has been an important option for potential buyers who don’t want to commit to a vehicle, its aging technology, and its purchase contract for more than three years.

Sticker shock pushes shoppers out of new-car market as affordability crisis deepens

Auto industry experts say consumers turning to used cars find little relief as prices remain elevated

A growing number of consumers are shying away from the new car market as prices increasingly become out of reach. But used cars aren’t offering much relief either, according to auto industry experts.

Joseph Yoon, consumer insights analyst at Edmunds, told FOX Business that shoppers are contending with the highest average monthly payments and highest average loan balances ever seen at Edmunds. The company’s data from October, the most recent on record, showed that the average monthly payment for a new vehicle reached a new all-time high of $766. The average amount financed toward a new vehicle also topped a new record at $43,218.

It’s putting additional pressure on shoppers at a time when consumer confidence has continued to deteriorate.

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