Leasing is continuing to gain momentum, helping dealers put their customers into vehicles today with the potential for having the late-model inventory stores need tomorrow.

According to Experian’s State of the Automotive Finance Market Report: Q2 2024, leasing is re-emerging as an optimal choice for those seeking flexibility and affordability with the market penetration reaching 25.35%, up from 21.14% last year and 19.30% in Q2 2022.

“As the influx of new-vehicle inventory persists, a wider range of models are becoming available and dealers and manufacturers are leaning back into leasing as a way to move metal,” Experian head of automotive financial insights Melinda Zabritski said in a news release. “While vehicle prices remain elevated, leasing offers consumers the appeal of a lower monthly payment, part of the reason for the renewed interest.”

For example, the average monthly payment for a leased vehicle declined across all credit risk tiers in Q2 2024 — with super prime borrowers seeing the average monthly payment decrease from $601 to $586 year-over-year, prime customers experiencing a drop from $596 to $583, and the average monthly payment for subprime consumers reaching $597 this quarter, down from $611 last year.

Additionally, the average monthly payment for a leased vehicle was $148 less than for a loan in the second quarter of 2024.

And when individuals are finished with their lease, those vehicles could help commercial consignment at the auction. Commercial consignment is already on an upward trajectory, based on the latest AuctionNet data provided to Auto Remarketing by the National Auto Auction Association.

Which vehicles could be heading down the lanes in 24 to 36 months? Among the top leased models in Q2 2024, Experian said the Honda CR-V continued to lead at 2.98%, followed by the Tesla Model Y (2.61%) and Honda Civic (2.29%).

Rounding out the top five were the Ford F-150 (2.02%) and Chevrolate Silverado 1500 (1.86%), according to Experian.

Experian elaborated about its findings through a free webinar that’s available here.