With new vehicle prices skyrocketing to record highs over the past couple of years, so have average monthly payments. Now, with prices beginning to cool slightly, one might expect these payments to also fall, but that effect has largely been mitigated by rising interest rates, which once again have consumers feeling the proverbial pinch. That’s also true of America’s favorite pickup – the Ford F-150 – which had an average monthly payment of $986 in the first quarter of the year, according to Experian’s Q1 2023 State of the Automotive Finance Market Report. However, the average Ford F-150 lease payment was quite a bit lower.
In Q1, the average Ford F-150 lease payment came in at $634, which is $352 or 36 percent lower than the average monthly finance payment. Regardless, this was still a bit higher than a pair of the F-150’s rivals – the Chevy Silverado 1500 and Ram 1500, which had average lease payments of $587 and $616, respectively, in the first quarter of 2023.
Despite this rather notable difference, most Ford buyers in Q1 opted to finance their new vehicle rather than lease, as Ford Authority reported earlier this month. Experian notes that the percentage of new vehicles that are being leased has declined over the past couple of years, from 27.93 percent in 2021 to 21.76 percent in 2022 and 18.23 percent thus far this year. Ford buyers, in particular, have helped drive this trend, as 85.19 percent of those customers opted to finance their new vehicle in Q1 2023, versus just 14.81 percent that chose to lease.
That finance figure was one of the largest in the automotive industry last quarter, trailing only Chrysler (91.42 percent), Tesla (88.02 percent), Toyota (86.37 percent), and Dodge (85.73 percent). Meanwhile, only Volvo had more customers opt to lease their new vehicle rather than finance it in Q1.