CULA Survey Finds Affordability and Flexibility Drive Auto Leasing in 2025

By W.B. King

According to a recent Credit Union Leasing of America (CULA) survey of consumers at the beginning and at the end of their leases, affordability is the top reason to lease a vehicle.

“Today’s rapidly shifting market – with tariffs potentially increasing vehicle costs from $2,000 to $15,000-plus, 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 at CULA.

For more than 35 years, the San Diego-based CULA has offered indirect vehicle leasing for credit unions and purports to empower “credit union innovators to diversify their existing loan portfolios, improve yield and expand member services.”

Technology and New Features

The survey, which polled 300 consumers in May 2025, found that 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,” the survey stated. ‘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.”

A Perfect Financial Instrument

CULA research also found that shorter term leases played a critical factor for consumers, noting that many prefer to change vehicles frequently and also “worry about a long financial commitment” in an uncertain economic climate.

“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,” said Harper.

According to the most recent Experian State of the Automotive Finance Report, 24.69% of all new vehicles were leased in the first quarter of 2025, up from 23.71% in the first quarter of 2024, and 24.49% in Q4 2024, with average monthly lease payments at $595 per month, significantly lower than the average loan payment of $745 (across all new vehicles).

In the first quarter of 2025, Experian’s Auto Trends Report, which sourced US vehicle titles, manufacturer data and credit information, reported the following statistics:

• Average new vehicle loan amount was $41,720 up $21 from last quarter of 2024.

• Average used vehicle loan amount was $26,144 down $511 quarter-over-quarter.

• Average new vehicle monthly payment increased $8 year-over-year, reaching $745.

• Average used vehicle monthly payment was $521, down $3 year-over-year.

• Electric vehicles (EVs) reached nearly 10% of new purchases and were leased at over 60% (nearly 23% of all new leasing).