P&A Providers & Administrators
MenuMENU
SearchSEARCH

Experian: More Consumers Turning to Leasing, Used Vehicles

March 8, 2016
3 min to read


SCHAUMBURG, Ill. — The average amount financed and the average monthly payment for new vehicles financed during 2015’s end-of-year quarter rose to record levels, according to Experian Automotive. But those weren’t the only records set during the period.


The credit reporting agency reported today that the average amount financed for a new vehicle in the fourth quarter increased by $1,170 from the prior-year period to $29,551 — the highest level recorded by Experian. The average monthly payment also rose $11 from a year ago to a new high of $493.

Ad Loading...


“People shop for vehicles largely based on monthly price, and right now, average dollar amounts for new vehicle loans are soaring,” said Melinda Zabritski, senior director of automotive credit for Experian Automotive. “In order to stay within their budget goals, we have seen that more consumers — even those within the prime and super-prime risk categories — are turning to leasing and used vehicles as cost-effective alternatives to buying new.”


Leasing accounted for a record high 33.6% of all new financing during the quarter, with the average lease payment landing at $412.


Additionally, used-vehicle loans accounted for 62.8 percent of all vehicle financing, with the average amount financed for a used vehicle coming out to $18,850. The average monthly payment for a used vehicle, according to Experian Automotive, was $359, with payment gap between new and used widening to an all-time high of $134 in the fourth quarter.


“Over the course of the last few years, we have seen the market stabilizing nicely,” Zabritski noted. “Credit scores are flattening out for new-vehicle financing and more prime consumers are shifting to used, which is helping increase the average score there as well.”


Experian reported that average credit scores across the board have flattened in the past few years. The average credit score for a new vehicle loan was 711, down from 712 in the prior-year period. Average credit scores for new vehicles peaked at 736 in 2009, then dropped 25 points from that period’s end-of-year quarter to the fourth quarter 2015. However, in the past six years, according to the firm, average credit scores for new-vehicle loans have dropped by only four points each year.

Ad Loading...


For used vehicles, average credit scores increased by one point to 649. Used-vehicle scores also have been relatively flat in recent years after peaking in 2009 at 657.


Here are other findings from Experian Automotive’s fourth quarter report:

  • Reliance on financing continues to grow, with 85.9% of all new vehicles and 54.7% of all used vehicles sold during the period having been financed.

  • The Top 5 models leased were the Honda Civic, Honda Accord, Toyota Camry, Toyota RAV4 and Ford Escape.

  • The Ford Fusion and the Chevrolet Silverado 1500 showed substantial gains in leasing during the period, rising 22% and 38%, respectively

  • The average interest rate for a new-vehicle loan was 4.63 percent, while the average interest rate for a used-vehicle loan reached 8.78 percent

  • Average loan terms for new and used vehicles held steady at 67 months and 63 months, respectively

  • Longer-term loans (those extending 73 to 84 months) for new vehicles grew by 12 percent to account for 29% of all new vehicles financed during the quarter. The percentage of used-vehicle loans with longer terms rose 10.8% to 16.4%.

More Industry

Photo of gray SUV plugged into public electric-vehicle charger in parking lot
Industryby Hannah MitchellJuly 21, 2026

World EV Adoption Set to Grow

A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.

Read More →
Bar chart of truck and SUV segments' weekly value change
Industryby StaffJuly 21, 2026

Black Book: Weekly Market Update

Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.

Read More →
laptop with blue car on screen on a shopping website, Clear Costs Convert
Industryby Lauren LawrenceJuly 21, 2026

Pricing Transparency Drives Purchase Consideration

An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.

Read More →
Ad Loading...
Bar graphic of used-car segment weekly change
Industryby StaffJuly 14, 2026

Black Book: Weekly Market Update

Used-vehicle market depreciation was the prevailing story in the wholesale market last week.

Read More →
Light-blue Fiat car parked on a sunny Chicago street
Industryby Hannah MitchellJuly 14, 2026

Smaller Is Looking Better

A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.

Read More →
man sitting at desk using calculator with charts in front of him, to-go coffee cup on desk, rising and falling data chart in front
Industryby Lauren LawrenceJuly 14, 2026

U.S. EV Market Slowly Stabilizes

U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.

Read More →
Ad Loading...
blue background, map of the world with connecting lights and an electric vehicle emblem in the middle
Industryby Lauren LawrenceJuly 8, 2026

Global EV Market Entering New Phase

Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.

Read More →
Bar chart showing week-over-week wholesale automotive price change
Industryby StaffJuly 7, 2026

Black Book Weekly Market Update

The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.

Read More →
Photo of Honda CR-V SUV on two-lane road next to roadside trees
Industryby Hannah MitchellJuly 1, 2026

Auto Affordability in Context

Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.

Read More →
Ad Loading...
Line chart of used-vehicle days to turn over past week
Industryby StaffJune 30, 2026

Black Book: Weekly Market Update

Automotive auction inventory increased last week, giving choosy bidders even more leeway.

Read More →