US Car Buying: Loans, Leases, Cash & Subscriptions originally appeared on Autoblog.
Installment Loans Remain the Workhorse
In today’s U.S. new‑car market, there’s one path that still claims the lion’s share of buyers: the traditional installment loan. With lease penetration running at roughly 24% and outright cash purchases hovering a little under 15%, that leaves just under 61% of all new‑car deals financed via a standard loan. It’s the old equity story — each monthly payment chips away at the balance until the car is yours outright, free of mileage caps or end‑of‑term surprises.
And despite rising rates, banks, credit unions and captive finance arms keep the loan option competitive enough notably through increasingly long terms, most shoppers simply can’t, or don’t, pass it up.
Acquisition Method
Approx. 2024 Share
Key Driver
Installment Loans
60.5%
Equity building; widespread dealer and bank financing
Leases
24.5%
Lower payments; regular upgrades; capped‑term flexibility
Cash Purchases
14.2%
Interest‑free simplicity; full ownership from Day 1
Subscriptions
0.8%
All‑in‑one, month‑to‑month convenience; turnkey services
How Leases Carve Out a Sweet Spot
Leasing has clawed its way back from the post‑pandemic doldrums to settle at about 24.5% of new‑car transactions. For drivers chasing lower monthly checks and the chance to hop into a fresh model every two to three years, leases hit the sweet spot: you pay only for the car’s depreciation, enjoy factory‑fresh extras and skip the resale headache. As OEM captives and third‑party lessors ramp up incentives, that quarter‑of‑the‑market share looks remarkably secure.
The Old‑School Appeal of Cash Purchases
Despite all the financing frills, just about 15% of buyers still write one big check. Paying cash means zero interest, zero lender fees—and zero lender involvement down the road. Yes, you tie up a chunk of capital up front, and you shoulder every penny of depreciation and maintenance. But for those who prize simplicity and an interest‑free deal, cash remains a steadfast, if dwindling, minority play.
Subscriptions: The Wild Card on the Horizon
If loans are the marathon and leases the steady sprint, car subscriptions are the explosive new relay leg—albeit one barely off the starting block. All‑inclusive, month‑to‑month bundles that wrap insurance, maintenance and roadside assistance into a single fee account for just 0.8% of new‑car activity today. Think Netflix for cars: no long‑term strings, the freedom to swap models at will and someone else handling the fine print. Tiny as it may be, the subscription segment is posting double‑digit CAGRs and stands to nibble away at loans and leases if consumers truly embrace frictionless, service‑first vehicle access.
The Bottom Line
So, loans and leases power 85% of America’s new‑car purchases, with loans alone driving almost two thirds of all deals. Cash buyers hold strong as the pragmatic minority, while subscriptions lurk at the fringes, ready to pounce. If tomorrow’s drivers crave Netflix‑style simplicity and all‑in‑one packages, that tiny sub‑1% could become the next big slice of the pie.
US Car Buying: Loans, Leases, Cash & Subscriptions first appeared on Autoblog on Jul 26, 2025
This story was originally reported by Autoblog on Jul 26, 2025, where it first appeared.
