COSTA MESA, Calif.—New data reveal the appeal of auto leasing continues to decline even as the same report also shows, as expected, the total dollars spent on leasing is rising, as car prices climb.
Examining data through January 2019, Equifax reported that 279,000 auto leases, totaling $4.8 billion, have been originated year-to-date. This is a 3.4% decrease in accounts and a 3.0% increase in balances, from this time last year, according to Equifax.
Auto leases accounted for 13.6% of all auto accounts originated through January, and 10.5% of balances.
Year-to-date, 25,000 auto leases have been originated to consumers with a VantageScore 3.0 credit score below 620.
“These are generally considered subprime accounts. This is a 3.3% decrease from January 2018. These newly issued leases have a corresponding total balance of $462.1 million, a 4.6% increase year-over-year,” Equifax said.
Through January, 8.9% of auto leases were issued to consumers with a subprime credit score. Through January 2018 the share was the same, Equifax said.
The average origination balance for all auto leases issued in January 2019 was $17,137.
“This is a 5.7% increase from January 2018. The average subprime lease amount was $18,150, a 6.3% increase over a year ago,” Equifax said.