DRIVERS are just realizing that they could be saving hundreds on monthly car payments - it's all in the way a vehicle is purchased. Consumers started considering an alternative way to get automobiles while also avoiding turbocharged auto loan rates and it's reemerging practice. The auto lease is making a comeback this year as the popularity of electric vehicles continues to grow, Detroit Free Press reported.
The leasing option is a way for drivers to see an affordable monthly payment of about $200 or lower. The average lease payment each month was $517 for a non-luxury vehicle, according to new data found by TransUnion . In comparison, the average auto loan payment would be $707 a month for a similar vehicle.
Read more on car buying Car buyers especially benefit from auto leasing when it comes to wanting to get an EV. Just about half of all electric car sales involved a lease in the second quarter of 2024, per the TransUnion study. That's an increase from around just one-third of the electric car sales for the same time last year.
Only 20.9% of EVs sold were leased in the second quarter of 2022. Most read in Motors It's a shocking spike until it's considered that there was a loophole in a key tax credit that was part of the Inflation Reduction Act of 2022.
It gives EV dealers a boost when it comes to the promotion of convincing leases for new electric cars and plug-in hybrids. "The application of the IRA tax credit is one of the key drivers without a doubt," senior vice presi.