Used-car prices, monthly payments reach record high

As used-vehicle retail prices and monthly payments reach record highs, more consumers may start to consider leasing as an alternative, according to an analysis by TheDetroitBureau.com.

It starts with new-vehicle prices, which now average over $36,000, thanks to American preferences for trucks and SUVs, according to Edmunds. The average used vehicle is now $20,084, the highest since 2005. Used vehicles with a retail price below $10,000 now make up just 16 percent of the market, down from 25 percent in the third quarter of 2013.

Consumers have dealt with the problem by making bigger down payments and stretching out their used-vehicle loans. The average used-vehicle monthly payment is now $400, an all-time record, said Edmunds.

Will the high prices of used vehicles, coupled with an expected increase in interest rates, make leasing more appealing, so the consumer can leave the lot with a new vehicle? Stay tuned.