Average Auto Lease Payment Increases to $659 in 2025

Gap Between Average Loan and Lease Payments Narrows

The gap between average monthly payments for car buyers and those who lease has tightened since 2022, when there was a $55 difference between loan and lease payments. That narrowing is largely due to a sharp rise in auto financing rates in 2022, which impacted buyers much more than those who leased. Later, the rising cost of cars would also catch up with lessees as well.

Average Monthly Payment for Auto Leases and Loans, 2020-2025

Keep in mind, however, that there's much less variance in the lease market. In other words, car leases are much more similar to each other than are car loans. SUVs dominate the top 10 leased models, according to Experian's State of the Automotive Finance Market report, with lease payments ranging from $416 to $612 monthly. Meanwhile, the portfolio of auto loans includes everything from six-figure loans for exotic sports cars to long-term loans for road-weary used cars.

Learn more: Is It Better to Lease or Buy a Car?

Auto Lease Payments by State: Hot Spots and Their Explanations

Texans make the largest monthly auto lease payments on average by a healthy margin. Residents of the Lone Star State pay an average of $785 each month for their leased vehicles. Not only is that 25% higher than the national average of $659 per month, but it's 50% higher than the typical lease payment in much of New England, where average payments are as low as $550 in 2025.

The reasons? Trucks and taxes. Trucks first: A majority of vehicles sold in Texas, including in major metropolitan areas, are light trucks, which cost an average of about $15,000 more than an average priced sedan, according to data from TexAuto Facts.

Then, taxes: Because of the way sales tax is paid on leased vehicles in Texas, average lease payments increase to recoup that sales tax the dealer pays upfront. In essence, Texans pay all of the sales tax on vehicle lessees immediately, unlike sales tax assessment in most other states.

Average Lease Payment by State

You can find a mirror image in the relatively truckless Northeast, where more leases are financed to drivers with above average credit (at least in the case of New Hampshire and Vermont).

Those Who Lease Tend to Have Higher Credit Scores

Those with good credit are more likely to opt to lease a vehicle than own one. Over the years, lessees generally have had an average FICO^® Score about 10 to 15 points higher than all consumers, including those who own vehicles. On the supply side, one reason lessees have better credit scores is that auto dealers rarely lease to drivers with lower credit scores.

Average FICO^® Scores, Car Borrowers vs. Lessees

A higher FICO^® Score can also translate to lower monthly lease payments, although the savings won't be as pronounced as it would for auto loans.

Learn more: Average Car Loan Interest Rates by Credit Score

Choosing to Buy or Lease Remains an Individual Decision

Usually, leasing a car means making fewer monthly payments and maybe a slightly lower payment than a driver would with a car loan. The big downside, of course, is that leased vehicles aren't building any equity. Once the lease term expires, the driver is back to square one. Although some consumers opt to purchase their lease, many drivers choose to repeat the lease process with another new car.

You'll also be paying insurance premiums for a leased car, which are increasing sharply for everyone, but especially for newer vehicles. That's partially due to higher repair costs for increasingly complex rides. Meanwhile, drivers of older cars may forgo full coverage insurance that's required of new leases. And in a worst-case scenario, would-be car lessees may want to consider purchasing gap insurance, which covers any costs above and beyond a car's residual value.

With leases no longer the relative bargain they once were, deciding between a loan and a lease may have become a more complicated decision for some drivers. When determining what's best for their garage, a driver must consider all the factors that go into the decision. That includes nonfinancial factors as well, such as mileage restrictions with a lease or the long-term commitment of owning a vehicle.