Average monthly new automobile lease payment in the U.S. 2012-2020

The average monthly lease payment for a new vehicle in the United States was 460 U.S. dollars in the fourth quarter of 2020. This is a decrease from the previous year - which contained the highest value recorded - albeit by a small amount.

What affects lease payments?

Leasing involves one party making regular payments to another party for a fixed period of time in return for the asset of a particular asset, e.g. a car. Economists look to the intersection of supply and demand when they want to explain prices. In this case, the supply is the level of automobile production. Demand is more difficult to measure, but the consumer sentiment index gives an idea of buying attitudes and consumer reactions to economic conditions.

Leasing and the secondary car market

Depending on the period, nearly a third of new vehicles are leased, rather than sold. This is good for consumers because the maintenance and depreciation costs get shifted to the dealership. After the lease term expires, the vehicles return to the dealer. At that point they can be resold as part of the used vehicle market. Because the vehicles have already depreciated, they are more affordable. A significantly lower proportion of used vehicle purchase require financing in the United States.