Average Car Lease Payments based on MSRP
Lease or Buy?
Leasing by MSRP
Prices below based on March 2023 Lease Data
I have averaged the lease payments for each MSRP price range to get the above chart. Keep in mind, the average car payments can vary significantly from month-to-month based on market conditions and new incentives as they are passed on to dealers from car makers. Also, the particular model you choose can make a huge difference. FAlso, the particular model you choose can make a huge difference. For example, the top lease deal of the month is the 2022 RAM 1500 Laramie Crew Cab 4×2 with an MSRP of $60,000, which leases for just $540.00 per month. This is several hundred dollars less than the $60K-$70K range, which has an average lease price of $932.00. Similarly, the $40,000 MSRP Honda Ridgeline has a lease price of $432.00 compared to the. $611.00 average lease price for cars in the $40K – $50K range.
The lesson here is that leasing in today’s market is much tougher than it’s been in the past. Personally, I would never lease a car if it didn’t save me more than 35% on my monthly payment over a 5-year car loan. The average savings of these lease prices above is a mere 18.5%. You would be much better off buying the car on a 5 year loan because the trade in value would be far greater than the amount you saved on the monthly lease payments.
Is Car Leasing Dead?
No, far from it. This same question was being asked about 15 years ago when I started this car leasing blog. We are in a lull; a bad time for car leasing based on interest rates (money factors), and other market conditions. Even though the reasons for the leasing collapse are not exactly the same, all things go in cycles. Leasing has been around for the better part of a century and there will always be a market for it. People want to drive new, reliable cars they can afford. It’s that simple. With that said, the March 2023 lease deals still reveal that there are some gems. If you are patient and look long and hard for what you want, you will eventually find the lease deal that is right for you.
One other Consideration
One factor that may influence the decision to lease or buy a car is the rapidly evolving technology in the automotive industry. With the rise of electric vehicles and autonomous driving, many car makers are offering new and innovative features that may make leasing more appealing. For example, some electric vehicle manufacturers offer battery replacement programs that guarantee a certain level of battery capacity over the course of the lease, which can alleviate concerns about battery degradation over time. Additionally, some self-driving cars may require software updates that can only be applied to leased vehicles, making leasing the more practical option. As the technology continues to evolve, it will be interesting to see how it affects the car leasing market and what that means ultimately in how much it costs to lease a car.