Vehicle Registrations Rise While Aging Vehicles Fuel Aftermarket Momentum

While the dynamics of the electric vehicle (EV) market continue to drive headlines, recent data reveals that although EV registrations remain steady, hybrids are becoming a practical bridge between gas-powered vehicles and EVs. Experian’s Automotive Consumer Trends Report: Q2 2025 found EVs accounted for 9.2% of new retail registrations, down from 10.5% in Q2 2024, and gas-powered vehicles declined from 73.7% to 71.9% year-over-year. Meanwhile, hybrids jumped from 15.8% to 18.9% in the same time frame. Digging a bit deeper, one of the most telling insights from the data was the apparent transition that consumers make when returning to the market for another vehicle purchase. The data shows that as consumers become familiar with alternative fuel types, some “graduate” into more electrified vehicles. For example, nearly 13% of gas-powered vehicle owners replaced their vehicle with a hybrid (10.8% for hybrids and 2.0% for plug-in hybrids [PHEV], respectively). Meanwhile, 52.2 % of hybrid owners returned to the market to purchase another hybrid and 5.0% returned to purchase a PHEV.  Further along in the electrified vehicle funnel, we’re seeing 11.0% of PHEV owners returning to market to purchase a hybrid, while 31.7% returned to purchase another PHEV and 22.2% purchase an EV. Most EV households are not exclusively electric Data in the second quarter of this year found 80% of EV-owning households also have a gas-powered vehicle and 14.9% also own a hybrid, demonstrating that consumers are looking for ways to accommodate their diverse driving needs. While the interest in EVs remains strong, many consumers still rely on more traditional fuel types for various reasons. Though, hybrids are notably becoming a middle ground solution as they offer fuel efficiency without the other concerns that can accompany an EV. As alternative fuel types continue to create a household name in the automotive industry, hybrids are starting to play a notable role in the transition to electrification. Data from this quarter not only shows that consumers are experimenting with alternative fuel types, but they’re also integrating them into multi-vehicle households. With their growing popularity reflects a pragmatic approach to balancing the latest innovation with everyday practicality, hybrids may be the key steppingstone that brings mainstream consumers closer to the electrified space. To learn more about alternative fuel type insights, view the full Automotive Consumer Trends Report: Q2 2025 presentation.  

In an ever-evolving automotive landscape, where shifting consumer behavior meets fluctuating market dynamics, Experian’s State of the Automotive Finance Market Report: Q2 2025 delivers key insights into how both consumers and professionals are adapting to the changes. This quarter’s report revealed a sharp increase in vehicle refinancing—up nearly 70% from Q2 2024—as consumers capitalized on the more stable rate environment. In fact, after refinancing, the average interest rate went from 10.45% to 8.45%. That shift resulted in their monthly payment dropping by an average of $71. Interestingly, credit unions played a significant role in the refinance surge, increasing their market share from 63.22% last year to 68.33% this quarter, and borrowers who refinanced through credit unions saw their monthly payments decrease by $87 on average. Banks saw a slight dip in their share of the refinancing market year-over-year, going from 22.71% to 21.45%, and borrowers who refinanced through them saved an average of $46 a month. New leaders emerge as the lender market share continues to evolve Taking a deeper dive into the automotive finance market share, banks reclaimed their leading position for total vehicle financing, rising to 27.50% in Q2 2025, from 24.50% in Q2 2024. Meanwhile, captives declined from 30.17% to 26.63% year-over-year, and credit unions slightly increased from 20.35% to 21.04% during the same period. For new vehicles, captives continued to lead at 52.39% this quarter, though it was a drop from 60.74% last year. On the other hand, banks grew from 21.12% to 25.91% and credit unions went from 9.99% to 12.24% in the same time frame. On the used side, banks edged ahead, increasing their share to 28.59% in Q2 2025, from 26.80% last year. Credit unions saw slight growth from 27.59% to 27.63%, while captives declined from 7.83% to 6.40% year-over-year. As affordability remains a key priority, consumers seem to be exploring financing options that offer more favorable terms. While Experian Automotive’s report continues to illustrate the evolving dynamics, these data-driven insights can empower both consumers and industry professionals to make smarter financial decisions. To learn more about automotive finance trends, view the full State of the Automotive Finance Market Report: Q2 2025 presentation on demand.

While many industry pundits are assessing how macroeconomic changes may impact the future of the automotive market, recent data suggests consumers tend to stick to specific fuel types. According to Experian’s Automotive Market Trends Report: Q4 2024, over the last 12 months, 77.5% of electric vehicle (EV) owners replaced their EV with another one, with 15.6% returning to gas-powered vehicles. Meanwhile, 82.2% of gas vehicle owners replaced it with the same fuel type, while only 4.7% made the switch to electric. It’s important for professionals to recognize that most consumers tend to replace their vehicles with the same fuel type. Additionally, knowing who is making these purchases and the types of vehicles being registered allows better anticipation for consumer needs and ultimately enhances the buying experience while fostering consumer loyalty. Breaking down fuel types by generation Through Q4 2024, Baby Boomers predominantly registered new gasoline vehicles, accounting for 74.7% of their choices, while 15.9% opted for hybrids and 6.6% chose EVs. Millennials showed a similar trend, with 69.2% registering gas vehicles, followed by 15.1% selecting hybrids and 12.5% choosing EVs. Gen Z also favored gasoline vehicles at 74.0%, with hybrids making up 14.3% and EVs at 9.1% of their registrations. Although gasoline vehicles account for the majority of new registrations, EVs and hybrids are steadily gaining ground, particularly among the younger generations who are drawn to advanced features that align with their preferences. This will likely play a role in shaping the future of vehicle registrations as more gas alternative models hit the market and consumers make the switch. To learn more about vehicle market trends, view the full Automotive Market Trends Report: Q4 2024 presentation on demand.