Affordability is the top reason consumers are leasing vehicles.

That assertion surfaced from a new Credit Union Leasing of America (CULA) survey of consumers at the beginning and at the end of their leases, with the majority saying they would lease again.

The survey showed vehicle leasing’s shorter terms also played a role for these consumers, many of whom like changing their vehicles frequently and worry about a long financial commitment in an uncertain economic climate.

Fielded in May, 60% of participants 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.

The survey also showed 89% of those at the end of their leases said they found leasing’s affordability, shorter commitment, and flexibility a good option versus a loan.

Furthermore, 68% 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.

New-vehicle leasing has grown significantly since its post-pandemic low of 18% in 2022.

According to the most recent Experian State of the Automotive Finance Report, 24.69% of all new vehicles were leased in Q1 2025, up from 23.71% in Q1 2024, and 24.49% in Q4 2024, with average monthly lease payments at $595 a month, significantly lower than the average loan payment of $745, across all new vehicles

“Today’s rapidly shifting market — with tariffs potentially increasing vehicle costs from $2,000 to $15,000+, high interest rates, and more — is creating a perfect storm of instability and astronomical pricing for car buyers,” CULA director of business development Chris Harper said in a news release. “In this context, 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 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,” Harper continued.