Average auto lease payments are increasing in Utah

While the majority of drivers still finance their vehicle with a loan, a share of drivers in the U.S. choose to lease. Leasing can have a few advantages over buying, such as more manageable payments and warranty coverage, but some of the advantages afforded to drivers who prefer leasing to buying are disappearing in 2024.

On the way UP

According to national Experian data from the second quarter (Q2) of 2024, the average auto lease payment was $638—lower than the average monthly auto loan payment of $655. The difference between average lease payments and average auto loan payments has narrowed from a $54 in 2022 to a mere $17 in 2024.

Contrary to the broader national trend, however, lease payments in Utah are more expensive than loan payments. Utah is one of only 13 states and Washington, D.C., with a higher average lease payment than loan payment.

In Q2 2024, about 8% of all financed vehicles on the road were leased versus 92% of vehicles that were financed with a loan. However, the share of those who lease versus buy has fallen by one-third since 2020, when 12% of auto financed rides were leases.

Losing the benefit

Drivers who choose to lease a car are often motivated to buy a lower monthly payment for a leased vehicle versus its loan-financed equivalent—most three-year lease payments are lower than four-year, five-year and even longer auto loan payments.

However, the payment advantage of leasing a vehicle has diminished or disappeared entirely when compared to purchasing a car in 2024. In Utah, a lease costs $7 more than an auto loan.

In this report, we'll look into anonymized and aggregated Experian data to provide an overview of the current lease market, recent trends and whether there will be more leasing or less in 2025 and beyond.

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