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High car prices have made leasing a more popular option for consumers who want to drive a newer, nicer vehicle than they can afford to buy using an auto loan. According to Experian's State of the Automotive Finance Market report from the second quarter (Q2) of 2024, the most popular car to lease was a Honda CR-V; Hondas in general were the most commonly leased automotive make.
If you're thinking about leasing a vehicle and need help deciding which make and model to lease, knowing the most popular choices can help you whittle down your options.
Top 10 Most Popular Cars to Lease
You can start by determining the make of car you want to lease. Here are the top 10 most leased vehicle brands in the U.S. based on market share.
Most Popular Lease Makes
The Most Leased Models
SUVs dominate the top leased auto models in the U.S. this year. The top 10 most leased vehicle models based on market share also include two electric vehicles (EVs).
Most Popular Lease Models
The Most Leased EV Models
EVs account for 8.35% of new vehicles purchased in the U.S. last year, according to Experian data, and are also popular leased vehicles. Here are the top EV models consumers lease based on market share.
Most Leased EV Models
Leasing cars is becoming more common as consumers look for ways to afford new vehicles despite high prices. Experian data shows 25.35% of new vehicles were leased, an increase from 21.14% last year and 19.30% in 2022. The average monthly payment for leased vehicles was $148 less than an auto loan payment in Q2 2024.
When it comes to EVs in particular, consumers are opting to lease rather than buy. Some 46.6% of new EV owners are leasing, according to Experian data, compared to 36.8% who purchased their EVs.
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Leasing vs. Buying: What's the Best Option?
Whether to lease or buy a car depends on your budget, vehicle preferences and driving habits. Leasing a car is typically cheaper than buying. The average monthly lease payment is $586, compared to an average monthly payment of $734 for a new car loan, according to Experian data.
If always driving a shiny new car appeals to you, leasing lets you switch from one model to another every few years without the hassle of selling your vehicle. Leasing may also make sense if you can't afford a big down payment but want to keep monthly payments low. Since leases typically last just two to four years, a leased vehicle is unlikely to need pricey repairs or maintenance, saving you money and headaches.
On the downside, auto leases usually limit the number of miles you can drive per year and prohibit you from modifying the vehicle in any way. If the vehicle is damaged or you exceed mileage limits, you'll typically pay extra at the end of the lease. When the lease ends, the vehicle generally returns to the leasing company. You won't own the car or have any equity to use toward a trade-in.
| Pros of Leasing | Cons of Leasing |
|---|---|
| Low or no down payment compared to buying | May have restrictions on mileage or usage |
| Lower monthly payments than buying | Breaking a lease can be costly |
| You return car at lease end without having to sell it | You don't own vehicle when the lease ends |
| Minimal maintenance and repair costs | No opportunity to build equity |
| Vehicle expenses may be tax-deductible | Fees can add up |
| You can always drive a newer car | You always have a monthly payment |
Buying a car generally costs more than leasing in the short term, but once the loan is up, you'll own the vehicle outright with no more monthly car payments. You'll also have equity you can tap by selling the car or trading it in for a newer model. Purchasing a car may make more sense than leasing if you don't mind driving an older model, typically put a lot of miles on your car or want the option to modify your vehicle.
There are some drawbacks to buying a car too. To qualify for favorable loan terms and keep monthly payments manageable, you'll typically want to make a 20% down payment, which could be a big stretch for your budget. A down payment of less than 20% increases the risk that your car's value could drop below your outstanding loan balance, leaving you owing more than the vehicle is worth. Once the manufacturer's warranty ends, maintenance and repairs for your vehicle can start to add up.
| Pros of Financing | Cons of Financing |
|---|---|
| You own vehicle when loan term ends | Requires larger down payment than leasing |
| Can finance new or used vehicles | Higher monthly payments than leasing |
| Can build equity for trade-in value | Higher maintenance and repair costs as vehicle ages |
| No restrictions on vehicle usage or mileage | As vehicle's value depreciates, you may owe more than it's worth |
| Vehicle expenses may be tax-deductible |
The Bottom Line
Whether you choose to lease or finance your next car, a good credit score can help you qualify for more favorable lease or loan terms. Before you begin shopping for your new ride, check your credit report and FICO® Score☉ for free with Experian to see where you stand and what needs a boost. You can help increase your credit score by paying bills on time and paying down high-interest debt. Taking steps to improve your credit before visiting a dealership could save you money on your next vehicle.