Affordability is Top Driver for Consumers Leasing Vehicles, according to New CULA Survey

Affordability is the top reason consumers are leasing vehicles, according to a new Credit Union Leasing of America (CULA) survey of consumers at the beginning and at the end of their leases, with the majority saying they would lease again. Vehicle leasing’s shorter terms also played a role for these consumers, many of whom like changing their vehicles frequently and worry about a long financial commitment in an uncertain economic climate. 
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In the survey, which was fielded in May 2025, 60% of those who had just leased a vehicle said the affordability of leasing was their top consideration in choosing a lease over a loan, while 40% cited being able to change a vehicle every few years to keep up with technology and new features. Eighty-nine percent of those at the end of their leases said they found leasing’s affordability, shorter commitment, and flexibility a good option versus a loan. Sixty-eight percent of those who have made a financing decision for their next vehicle said they would lease again, with the majority (68%) of those citing affordability as the reason, and the balance (32%) saying shorter loan terms and economic uncertainty/market volatility.

“Today’s rapidly shifting market – with tariffs potentially increasing vehicle costs from $2000 to $15,000+, high interest rates, and more – is creating a perfect storm of instability and astronomical pricing for car buyers,” said Chris Harper, Director of Business Development for CULA. “In this context, it is no wonder that our survey highlights the critical importance of vehicle leasing as consumers stretch their budgets just to get into a vehicle. With new vehicle lease payments, on average, $150 dollars a month lower than loan payments, and with its much shorter terms, this survey confirms that vehicle leasing is the perfect financial instrument for today’s – and tomorrow’s – car buyers.”

New vehicle leasing has grown significantly since its post-pandemic low of 18% in 2022. According to the most recent Experian State of the Automotive Finance Report, 24.69% of all new vehicles were leased in Q1 2025, up from 23.71% in Q1 2024, and 24.49% in Q4 2024, with average monthly lease payments at $595 a month, significantly lower than the average loan payment of $745, across all new vehicles

Survey Methodology: Credit Union Leasing of America (CULA)’s 2025 Consumer Leasing Survey was fielded online between May 6, 2025 and May 20, 2025. Over 300 lessees either at the beginning or at the end of their leases participated.

For over 35 years, CULA has been the leader in indirect vehicle leasing for credit unions, offering an analytically driven, high-value program that simplifies the complexities of leasing—including insurance, operations, compliance, and more. With a deep understanding of the credit union financial model, CULA has built long-term partnerships with top-tier credit unions, including nine of the top 10 credit unions offering leasing in the U.S. Its program enables credit unions to seamlessly integrate leasing into their portfolios while providing dealers with a valuable financing option—especially as affordability remains a top concern for consumers.

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