DETROIT -- The gap between monthly payments for leases and used-vehicle loans continues to widen, according to Cox Automotive. Because of the payment difference, lease volume could decline as consumers shift to used vehicles.
The gap between lease payments and used-vehicle loan payments reached $76 this year through May. That's more than double the $36 gap in 2014, according to Cox Automotive.
"With that price difference we see rising, it's just going to make that used vehicle that much more attractive than it might have been before," Charlie Chesbrough, senior economist for Cox Automotive, said at a media event last week here.
Because of multiple factors, such as upticks in interest rates by the Federal Reserve, weakening residual values and the type of vehicles consumers are leasing, lease payments are rising faster than loan payments, Chesbrough said.