Car financing and leasing in the United States - statistics & facts

There are millions of car sales each year in the United States. While some consumers are able to purchase them outright, the majority of new vehicle transactions, and a large share of used vehicle transactions are financed. For consumers, this enables them to smooth the cost of the purchase over several years. For the various automobile loan providers, they provide interest revenue, with the car as collateral. For many in the United States, public transportation does not service the areas in which they live and work. As such, having a car gives them more options and a mobility they would otherwise not have.

Why do consumers choose to lease a car?

Car sales in the United States dropped overall after a peak in the 1980s, and they have reached even lower levels in recent years. For some drivers, owning a car presents a host of maintenance problems and costs of depreciation. This has led to a passenger car leasing industry, which has a significant share of the market, even if it has decreased in recent years. The consumer can rely on the dealer to perform routine upkeep such as oil changes, and after the term of the lease, ownership reverts to the dealer. Such arrangements account for a sizable share of new vehicles that enter the market in the United States.

Car financing and leasing conditions for the consumer

The total automotive loan balances in the United States increased a lot throughout the past decade. Both financing and leasing are multi-year investments for the banks, credit unions, and dealerships that pay the up-front costs of the vehicle. As such, the borrower’s credit score influences the value of the loan, as well as the interest rate paid. In fact, during economic downturns, the car loans for borrowers in the lowest credit score level tend to decrease more than those that are considered to be less risky. Even for used cars, the average credit score needed matters and is steadily increasing year-on-year.
This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.
Published by Statista Research Department, Nov 4, 2022

Key insights

Size of the U.S. automotive aftermarket
374bn USD
Number of new car models offered in the U.S. market
34
Number of cars sold in the U.S. annually
2.86m units
Get more insights

Editor’s Picks Current statistics on this topic

Advertising spending in the automotive rental and leasing industry in the United States from 2020 to 2021 (in million U.S. dollars)

Advertising

U.S. automotive rental and leasing industry ad spend 2020-2021

Market share of leading new leasing vehicle models in the United States in 3rd quarter 2022

Loans & Leasing

Market share of leading new leasing vehicle models in the U.S. 2022

Average monthly payment for new and used vehicle financing in the United States from 2020 to 2022, by type (in U.S. dollars)

Loans & Leasing

Average U.S. monthly payment for new and used vehicle financing 2020-2022, by type

Related topics

Recommended

4

Recommended statistics

Car loans

7

Car loans

Car leases

4

Car leases

Interest rates

4

Interest rates

Payments & maturity

6

Payments & maturity

Risk and delinquency

6

Risk and delinquency

Further reportsGet the best reports to understand your industry

Contact

Get in touch with us. We are happy to help.
Statista Locations
Contact Meredith Alda
Meredith Alda
Client Support Specialist– Contact (United States)
Email
support@statista.com

Mon - Fri, 9am - 6pm (EST)

Contact Yolanda Mega
Yolanda Mega
Operations Manager– Contact (Asia)
Email
asia.support@statista.com

Mon - Fri, 9am - 5pm (SGT)

Contact Kisara Mizuno
Kisara Mizuno
Senior Business Development Manager– Contact (Asia)
Email
support.japan@statista.com

Mon - Fri, 10:00am - 6:00pm (JST)

Contact Lodovica Biagi
Lodovica Biagi
Director of Operations– Contact (Europe)
Email
eu.support@statista.com

Mon - Fri, 9:30am - 5pm (GMT)

Contact Carolina Dulin
Carolina Dulin
Associate Director - LAC– Contact (Latin America)
Email
support@statista.com

Mon - Fri, 9am - 6pm (EST)

Menu