According to Experian’s Automotive Market Trends Report: Q3 2022, new vehicle registrations were down 16.4%, going from 12.2 million through Q3 2021 to 10.2 million this quarter. Used vehicles experienced a 12.6% decline, coming in at 29.8 million through Q3 2022, from 34.1 million the previous year.

Experian’s State of the Automotive Finance Market Report: Q3 2022 found that consumers with credit scores between 300 and 660—also considered as the nonprime segments—are continuing to opt for used vehicles rather than new.

In honor of all the marketers who frantically created and activated audiences for Cyber Five sales (Thanksgiving Day through Cyber Monday), this blog announcing a resource for automotive marketers on how to best activate their automotive audiences is timely! I realize the following spending stats are totals for consumer spending, not just automotive consumer spending, but these dollar amounts put advertising and media spending into perspective. Adobe Analytics reported that consumers spent $35.4 billion online over the Cyber Five period this year, breaking a record. Many marketing campaigns ran on various channels to reach that many consumers. Strategic campaign development is key to effective activation Marketers know all the hard work that goes on behind the scenes before media is activated. As automotive marketers, let’s recap what typically happens before activation even begins. It is common to begin by linking fragmented consumer data across channels, platforms, and devices into unified customer profiles for more effective cross-channel targeting. Using identity solutions helps marketers target the right consumers on the right channels. After unifying customer profiles, marketers often look at auto-specific market, vehicle, and consumer data insights to help gain a deeper understanding of market competition and opportunities, vehicle interest, and critical consumer information (demographics, psychographics, etc.) Next, many marketers leverage automotive, lifestyle, and predictive data to target specific consumer segments across all channels for true omnichannel marketing. Once this is complete, marketers can choose their audience, depending on what their goals are and which channels they are focusing on. Once all this pre-work is finished (and I over-simplified all the hard work behind these steps), marketers need to Activate their campaigns by selecting the best channels. Leverage various media partners and platforms At Experian Automotive, we believe marketers can improve their ability to reach their intended audience participants and measure their overall campaign results if they are strategic during Activation. Leveraging various media partners and platforms allow marketers to activate audiences more effectively and execute more strategic, measurable, multi-channel marketing campaigns. The key is to find a vast network of media destinations and onboarding capabilities that empowers you to activate audiences and connect with a single audience across channels delivering personalized, addressable experiences. To help auto marketers understand all the areas of Activation, we’ve written a resource, How to Activate Your Audience on the Most Strategic Channels, that you can download now. We’ve also written these other resources to help automotive marketers use data insights to develop more strategic, measurable marketing campaigns. They are all complimentary so feel free to download them too! Identity Solutions: Helping Marketers Deliver Personalized Communication for Life Audiences: Automotive Audience Choices are Key to Ever-Changing Strategies Customer Insights: Understand Your Customer Before Choosing Your Audience Measurement: Measuring Marketing Performance is Critical to Long-Term Succes

New EV registrations have increased almost 60% since this time last year—and while gasoline vehicles continue to dominate the market, data shows new gasoline registration volumes are dropping year-over-year.

According to Experian’s Automotive Consumer Trends Report: Q2 2022, EVs comprised more than 1.7 million vehicles in operation throughout the US, quite a jump from more than 400,000 EVs just five years ago in Q2 2018.

When your marketing strategies don’t go as planned, don’t you wish you could have taken a “mulligan?” In today’s marketing world, it’s normal and critical to measure marketing effectiveness.

Did you know that GenX had the most Hybrid owners migrate to Electric Vehicles in 2021? And believe it or not, the next group behind GenXers were Boomers! That’s right, not millennials or GenZ…Boomers! We have many more details to share on the Electric Vehicle segment and the consumers in that segment who buy them in our newly released Experian Automotive Consumer Trend Report: Q2 2022. Every quarter, Experian’s Automotive Consumer Trends Report provides insights into specific vehicle segments and the associated consumers within that segment. This quarter focuses on the Electric Vehicle (EV) market. The report answers these questions: How many EVs are on the road? Where are they located? How have recent EV registrations shifted the geographic distribution? Which manufacturers are selling those vehicles? Who is taking market share from whom? Who are the consumers who registered those vehicles? What are the demographic and psychographic insights for those consumers? There are two ways to receive the report information: Watch the on-demand presentation of the report while our analyst provides critical insight & analysis OR Download a PDF version of the report At Experian Automotive, we understand that marketers need to deeply understand consumers to develop targeted, effective marketing strategies. Whether you are an OEM marketer, an agency, or an auto dealer, our presentation will transform complex market data into actionable insights that you can begin using immediately.

The AutoCheck FREE Flood Risk Check site has been updated with data from Kentucky, Colorado, Texas, and Missouri floods New cars continue to be in short supply due to the microchip shortage, so consumers quickly turned their attention to used cars. Unfortunately, dealers continue to struggle with obtaining enough used car inventory to meet demand. To add to an already challenging time, Mother Nature has brought record flooding in multiple areas of the United States. It’s more important than ever that dealers be careful about obtaining pre-owned cars that could potentially have flood damage. The best way to mitigate the risk of purchasing a flood damaged vehicle is to start by running an AutoCheck Free Flood Risk Check. Visitors simply enter any vehicle's 17-digit VIN and the tool will check for flood brands and provide information if the vehicle was registered in a region impacted by a FEMA disaster declaration. Two levels of reporting available The first level of reporting determines whether the vehicle has been titled/registered 12 months prior in a county that has been identified as requiring public and individual assistance (FEMA categories A and B) for a FEMA-declared major disaster. This would yield a “Yes” result. For instance, you would get a “Yes” result if the vehicle was registered in an impacted area during the time of a FEMA-declared major Hurricane disaster. The “Yes” result should not be interpreted as confirmation of flood damage or even possible flood damage. The data is provided merely as information regarding the location of the vehicle’s registration/title history so users can be aware of risk exposure. For example, the Hurricane Ida region had thousands of damaged cars, but some cars in the region may not have been damaged by the hurricane — the owner could have driven the car when they evacuated, or a child or other family member may have been out of town with the car when the hurricane hit. The second level of reporting is based on search results from Experian data such as flood title and problem records, including flood State title brands, auction flood announcements, salvage auction flood designations, and other vehicle records determined by Experian to relate to or suggest an increased likelihood of flood damage or risk exposure. It takes time for claims and updates to vehicle title information to appear on a vehicle’s history and although the DMV requires that title brands be issued for vehicles damaged by floods, not every vehicle flood event is reported by car owners. Unreported flood events may not appear on an AutoCheck Flood Risk Check or AutoCheck Vehicle History Report. Although Experian provides flood related records from available data sources, we cannot provide assurance that an AutoCheck Flood Risk Check that does not produce any records means that the subject vehicle has not experienced flood damage. That’s why it’s important to review a full AutoCheck Vehicle History Report, which—in addition to potential flood damage—includes reported accidents, branded titles, recalls, number of owners and more. Once you run the full Vehicle History Report we recommend an independent evaluation and inspection of the vehicle to determine and confirm a vehicle’s condition prior to purchase. Try the AutoCheck Flood Risk Check today to help mitigate the risk of purchasing flood damaged vehicles. Not an AutoCheck subscriber?  Contact us to become an AutoCheck client.

According to Experian’s State of the Automotive Finance Market Report: Q2 2022, the average new vehicle interest loan rate for consumers with a credit score between 501 and 600, also referred to as subprime, was 9.75%—compared to prime consumers with a credit score between 661 and 780, who had an average new vehicle interest loan rate of 4.03% this quarter.

Leasing has long been a popular choice among consumers who want to enjoy the latest vehicle models, but at a lower monthly payment. In fact, the average monthly lease payment was $127 less than a loan payment in Q2 2022. However, in recent quarters, we’ve seen leasing availability decline due to current market conditions. According to Experian’s State of the Automotive Finance Market Report: Q2 2022, leasing declined from 27.82% to 19.65% year-over-year, marking the lowest drop in quite some time. When analyzing previous data, leasing comprised 30.41% of all new vehicles in Q2 2018, decreasing to 30.04% in Q2 2019 and 26.58% in Q2 2020. There are likely a number of factors contributing to the decline of leasing over recent years, including the ongoing inventory shortages and OEMs not offering as many incentives, which may result in leasing opportunities becoming less common. Other scenarios can be consumers choosing to extend their lease, or purchase the vehicle once their lease has expired. In Q2 2022, the average monthly lease payment increased to $540, from $475 in Q2 2021. Though, the average monthly loan payment for a new vehicle surpassed $600 this quarter—coming in at $667, an $85 year-over-year increase. As automotive professionals continue to navigate through the inventory shortages and subsequent vehicle price increases, understanding the landscape and what options are available for consumers will be critical. One way to keep on top of the trends is analyzing the pricing options for the most popular leased models, which will enable more informed decisions in the months to come. Average monthly payment for top leased models As previously mentioned, there was an average payment difference of $127 between a lease and a loan in Q2 2022. However, that’s just an average, and these numbers can vary based on the vehicle type. For example, the average monthly lease payment for a Honda Civic was $363 in Q2 2022, as opposed to the average monthly loan payment of $476. In comparison, the average monthly lease payment for a Ford F-150 came in at $516 this quarter, compared to the average monthly loan payment of $832. While a pickup truck may typically have a higher average monthly lease payment than a sedan, consumers are continuing to choose larger vehicles, overall. In Q2 2022, there was only one sedan that made up the top leased vehicles—with the Ford F-150 having the highest leasing registration volume, comprising 2.3% this quarter. Rounding out the top five were Chevrolet Equinox (2.27%), Honda CR-V (2.16%), Honda Civic (2.09%), and Ram 1500 (1.81%). Despite the overall decline in leasing over the past year, it continues to be a financing option that consumers can consider amid vehicle prices increasing. Knowing what vehicles are most prevalent as well as their price points will allow professionals to create strategies that cater to the most current consumer financing preferences during their search for a vehicle that fits their needs. To learn more about leasing and other automotive finance trends, watch the entire State of the Automotive Finance Market: Q2 2022 presentation on demand.

To help your marketing dollars go further in 2022, developing multichannel strategies that more efficiently incorporate both traditional and online consumer audiences is key to more effective campaigns. Doing this well requires marketers to understand your consumers and how they best respond to marketing, including what channel (direct mail, email, OTT banner ads) or what message (vehicle reliability, value for dollar, celebrity endorsement) works best. Working with the right partner for audience insights enables you to segment audiences and filter for automotive criteria that drive more targeted, segmented marketing. What are traditional audiences? In most cases, traditional (sometimes referred to as offline) audiences include consumers reached through radio, standard TV, billboards, text, direct mail, or phone calls. To fulfill any traditional audience strategy, a dealer or agency requires consumer Personally Identifiable Information (PII) such as name, email address, mailing address, or phone number. Traditional marketing has also been called direct marketing when the marketing is sent specifically to a home address, email address, or phone number. For instance, when utilizing direct mail, automotive marketers require the most up-to-date consumer information to ensure they reach the correct mailbox. To reduce cost and personalize the marketing experience, the best marketers utilize audience sources based on strong data sets unique to the automotive world. For example, targeting consumers driving a particular vehicle or nearing the end of their lease is more effective than just sending a generic message to an entire geographic area. Even with the explosive growth of digital marketing, direct marketing remains relevant. Consumers still respond and use offers sent to their mailboxes, and personalized mailers still result in vehicle sales or service appointments. While there is a higher cost per thousand than digital marketing, direct marketing still earns an essential place in the automotive retail media mix. What are online audiences? Online audiences are typically consumers reached through 0ver-The-Top (OTT) advertising, banner ads, or addressable TV. When using these marketing channels, PII is not needed. Online marketing can encompass many different methods to reach customers, including social media, email, websites, blogs, and search engine traffic. Nearly every business will benefit from online marketing because it's a great way to reach people where they already are—online. Online marketing has grown in a digital world where so many people rely on their cell phones to organize their day, conduct research, and communicate with the world. According to Tech At Last, “most households now have between 5 and 10 screens. Those numbers include tablets, PCs, notebooks, smartphones, and televisions. These devices include any screen that enables users to watch or read content.1 Audience modeling can help simplify the chaos of digital channel segmentation Utilizing digital channels allows marketers to reach consumers where they increasingly spend their time. Whether it is their Inbox, streaming service, social media, or other digital platforms, knowing consumer preferences makes the marketing experience more meaningful. In other words, capitalizing on audience modeling to determine the best channel and how the consumer engages with the channel can make all the difference. For example, to showcase your new Hybrid, you may not want your video advertising shown on a YouTube channel about construction! The same commercial would resonate far better on a channel with DIY or gardening shows. To best capitalize on addressable TV, 0ver-The-Top advertising, or banner ads, marketers should work with an audience provider who can identify targeted segments based on psychographic, demographic, and geographic data allowing for more effective marketing. Look for a provider like Experian Automotive that can deliver a robust database, extensive consumer insights, and deeply established partnerships for audience activation (social media or TV), allowing your marketing dollars to work harder with extended reach. Whether you are looking to reach consumers online or traditionally, reaching the right consumers with the right message on the right channel is always the goal. To achieve this, working with a third party for audiences built on clean data is necessary. If you can segment the audiences or filter for automotive criteria, your marketing dollars and messaging will go farther! 1TechAtLast (2014) The Average Number of Screens in a Home Has Increased 

I love the random “National” holidays that are popping up. Did you know we recently celebrated National Chocolate Chip Cookie Day? It’s no 4th of July or Labor Day, but I love cookies, so I’m gonna roll with it. Today, we will chat about Identity Resolution in relation to strategic marketing. So, believe it or not, I’m going to tie in Identity Resolution to chocolate chip cookies! (By the way, if you haven’t read my last two blogs, this is a trend! Check it out:) Use Data Insights for an Eagle’s Eye Approach to Marketing (National American Eagle Day) Building the Perfect Audience is Like Building the Perfect Burger (National Hamburger Month) What is identity resolution? Identifying who you want to target as part of a strategic marketing campaign is critical as a marketer in the auto industry. Experian defines this process as identity resolution or “the ability to stitch together and unify the names, addresses, emails, device IDs, cookies (not the yummy kind), and other identifiers associated with customers.” Today’s marketers risk working with outdated, fragmented, or incomplete data without proper identity resolution, which correlates to inefficient campaign targeting and wasted marketing dollars. So, let’s use baking a chocolate cookie as an example. For the perfect cookie, you need flour, white sugar, brown sugar, salt, baking soda, butter, vanilla, eggs, and chocolate chips. There are a lot of ingredients, and you need all of them to make a complete cookie. When it comes to targeting consumers, let’s say you only have fragmented pieces of customer information for a woman who bought a car from you (partial ingredients). You have her name, the address where she lived when she purchased the car, and what looks like a work email address (that has bounced). So, it’s like having the flour, eggs, and sugar for your cookie! But you need the rest of the ingredients for the recipe, and you need to confirm whether any key ingredients have expired or “gone bad.” Or you may have customers you know through analytics who have visited a dealer or OEM website, but you can’t track them down further. You have an electronic footprint but no other identifying data. So, you have the critical ingredient like flour, but it’s not necessarily super helpful unless you have other pieces to complete the recipe. Find the missing ingredients with identity resolution solutions Marketers need to utilize solutions like data hygiene, database management, additional data append, digital identity resolution (to link anonymous online IDs to data assets), and identity graphs to help create a complete view of their customers and prospects. In other words, some solutions can help bring all the ingredients together to make a “whole” cookie or a “whole” customer. You’re ready—add the chocolate chips and bake! I realize that identity resolution can be complicated, so we’ve written a resource with examples/scenarios and the corresponding solutions that can help resolve typical challenges. Download a complimentary copy of Identity Resolution: Helping marketers deliver personalized communication for life. At Experian Automotive, we are experienced in unifying fragmented data points across offline and online touchpoints to create a complete view of your best auto customers and prospects. Feel free to reach out to discuss our solutions or to share your favorite chocolate chip cookie recipe.

Consumers are shifting to used vehicles over new, with a higher percentage of consumers financing used. The move comes as the industry continues to grapple with inventory shortages, driving vehicle values higher.

According to Experian’s Automotive Market Trends Report: Q1 2022, new vehicle registrations were down 19% from the prior year—declining to 3.4 million. Used registrations went from 11.4 million to 9.9 million year-over-year, decreasing 13.2%.

Whether a consumer has a brand-new or used vehicle, it’s inevitably going to need regular maintenance and require repairs. Fortunately for aftermarket professionals, the aftermarket “sweet spot” is continuously growing—a trend that should be watched closely. Vehicles in the sweet spot are typically between six- to 12-model-years-old and have aged out of general OEM manufacturer warranties for any repairs. Knowing the model year and type of vehicles that are in operation will be important for aftermarket professionals to determine what parts may be needed, and anticipate potential consumer needs. According to Experian’s Automotive Market Trends Report: Q1 2022, 35.8% of vehicles in operation (VIO) now fall within the aftermarket sweet spot, a 6.5% year-over-year increase. It is important to note that the aftermarket sweet spot max volume record of 104 million is expected to be broken over the next 12-18 months, considering the sweet spot volume was 100.3 million through Q1 2022 and the last time it exceeded that number was nine years ago. The increase will create more opportunities for aftermarket professionals as more vehicles will potentially need maintenance. Aftermarket “sweet spot” will continue to grow Right now, the aftermarket sweet spot consists of model years between 2011 and 2017. There were 10.5 million 2011 model year vehicles on the road through Q1 2022, this low volume will transition into the post-sweet spot next year. At the same time, there will be 16.5 million 2018 model year vehicles entering the sweet spot. Furthermore, an estimated 16.7 million vehicles in operation with a 2019 model year and almost 14.3 million vehicles in operation with a 2020 model year will be transitioning into the sweet spot in the next two years. When these model year vehicles enter the sweet spot, the current 12 million vehicles with a 2012 model year and an estimated 13.7 million 2013 model year vehicles will transition into the post-sweet spot, resulting in a notable increase. Watching this data closely will allow aftermarket professionals to continue assisting with maintenance and repairs for these vehicles that are currently on the road, as well as prepare for what’s to come to the aftermarket industry in approaching years. To learn more about other vehicle registration trends, watch the full Automotive Market Trends Report: Q1 2022 presentation on demand.