Automotive Digital Marketing

Professional Community for Car Dealers, Marketing, Advertising and Sales Leaders

Loading... Be Patient!

Where Loans vs. Leases Are Becoming an Affordability Issue

Equifax has new insight as we close out 2018 on the topic of affordability, with data that show where affordability is becoming more of a potential issue. According to Equifax, the average lease balance financed has increased just +5.5% from January 2016 to November 2018. Conversely, the average loan balance financed during the same period has increased +24.2%.


Lease Balance

Jan. '16: $15,415

Nov. '18: $16,257



Loan Balance

Jan. '16: $21,928

Nov. '18: $27,241



"No doubt, sticker prices have increased over the past few years, and it's difficult to say that consumers haven't begun to feel this increase in the wallet, especially as interest rates have also increased lately," said Lou Loquasto, Automotive Finance and Dealer Leader for Equifax. "Affordability may be a growing issue entering 2019, as more auto shoppers turn to higher priced SUVs and luxury vehicles with the latest technology and features. Conversely, as lease terms continue to shrink, value-conscious shoppers will focus more on keeping payments as low as possible and will look for deals that finance only the portion of the vehicle they plan to use during a given term."


Lou Loquasto would be interested in expanding on this insight, and to discuss how data solutions are available today to help with credit qualifications, verifications and the insight needed to match the right vehicle budget with each shopper to maintain proper loan risk levels.

Views: 28


Oops... You need to stop "Lurking" on ADM and become a more genuine Automotive Professional by completing your membership registration. As a registered ADM Member, you can post comments, publish your own articles (be a star!) and start Forum discussions. Stop being an online "Peeping Tom" and JOIN ADM RIGHT NOW!

Join Automotive Digital Marketing

Automotive Professional Network and Resource Exchange for Car Dealers, Managers, OEM and Marketing Practitioners seeking Best Practices.

ADM Sponsor

William B. Terry
Rated by Super Lawyers

loading ...

ADM Badge


Based On Your Interests...

ADM Consulting, LLC

Onsite/Offsite Combination ADM Consulting, LLC Professional Services
Select the maximum monthly investment you plan to make
Sign up for

Automotive Marketing Tools

Get ADM Toolbar

Click here to take the ADM Member Survey

Getting too many emails from ADM? Click mailbox below to control which types of alerts and updates you are sent......



ADM Professional Services
Phone Consultation
Topic or Issue:

Top Automotive Marketing Forum Discussions

Share the Best Content w/AutoMarketing Community

© 2020   Created by Ralph Paglia.   Powered by

ADM Badges  |  Report an Issue  |  Terms of Service