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Location, Location, Location: How Auto Financing Changes Across the Country

Published: June 8, 2021 by Melinda Zabritski

Cars sitting in a car dealership lot

The auto finance industry has seen its fair share of shifting trends over the past year. With so much data changing rapidly, it can be easy to generalize the trends for the entire industry, just to keep up.

On one hand, it can be helpful to establish an overall baseline by looking at the data at a national level. But we have to remember trends can vary significantly based on our location. In the Q1 2021 State of the Automotive Finance Market report, we took a look at market share both nationally and regionally.

Banks Lead in the Midwest and South, Captives Lead in the West and Northeast

On a national level, captives were the only lender to significantly increase their share of the total auto finance market in Q1, increasing from 23.82% in 2020 to 28.02% in 2021. Banks decreased from 30.90% to 29.04%, and credit unions decreased from 18.41% to 17.23% of total market share.

Regionally, banks held 33.26% of the auto finance market share in the Midwest, as well as 30.83% of market share in the South, while captives held 31.23% of market share in the West, and 44.34% in the Northeast. Meanwhile, credit unions, which hold 17.23% of total national market share, hold higher shares in the West (23.29%) and Midwest(20.61%).

Differences Between New and Used Financing Market Share

There were strong variances between overall lender market share across regions, and we saw that same trend when looking at market share by lender across the new and used vehicle markets.

Captives held the most market share for new vehicles in all regions, holding 54.13% in the West, 55.66% in the Midwest, 67.69% in the Northeast and 49.20% in the South. Banks held the most market share for used vehicles in the Midwest (36.42%), Northeast (41.98%) and South (31.69%). Meanwhile, credit unions came out on top in the West, holding over 31% of market share.

As lenders and dealers look to grow and maintain their market share, it’s important that they leverage data to inform their strategies. Looking at the trends at a national level can help form an overall baseline of the market. But understanding trends at a regional level can provided additional information that enables lenders and dealers to be more strategic in their decision making.

Learn more by watching Experian’s full Q1 2021 State of the Automotive Finance Market report.

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Published: June 5, 2025 by Melinda Zabritski

Vehicle price. Monthly payment. Loan terms. Interest rates. Those are the more prominent buzz words dealers hear from consumers throughout the vehicle shopping process, particularly in our current environment. And rightfully so, in-market shoppers are hoping to get the most value for their wallets. But let’s not forget how valuable transparency can be, especially with used vehicles. Hidden damage from accidents or natural disasters, as well as title brands, among other factors, can have a significant negative impact on the drivability of any given vehicle. Ensuring consumers have visibility to that information can help them make a more informed purchasing decision, and more importantly, help dealers potentially build a lifelong relationship with them. Plus, consumers want that information. According to a recent Experian survey [1], nearly all respondents (98%) said a vehicle history report is important to them when considering the purchase of a used vehicle. Furthermore, almost 70% said accident history information in a report would likely influence their purchasing decision, followed by frequent repairs (61%) and title problems such as salvage or flood damage (55%). Given the significance of used vehicles in the automotive market, having tools such as Experian AutoCheck® vehicle history reports readily available on dealership and manufacturer websites can help buyers make more informed decisions. Where today’s consumers start their vehicle search Knowing what resources consumers are using to search for their next vehicle plays a role in identifying where they’re gathering their information, and in turn, can help guide dealers in offering relevant information during the decision-making process. The survey revealed that 64% of consumers browse dealership websites and 46% look at manufacturer websites during their buying process. In a competitive market, having instant access to a vehicle’s history can help streamline the shopping experience while allowing buyers to feel more confident and drive conversions. Leveraging this information will allow businesses to tailor their consumer engagement strategies to meet the specific needs or concerns of potential buyers at each stage of the journey. To learn more, visit Experian AutoCheck® Vehicle History Reports. [1] Experian commissioned Atomik Research to conduct an online survey of 2,005 adults throughout the United States. The sample consists of adults who estimate they will purchase or lease their next vehicle within the next 24 months or sooner. The margin of error is +/- 2 percentage points with a confidence level of 95 percent. Fieldwork took place between March 24 and March 27, 2025.

Published: May 6, 2025 by Dalton Heath

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Published: March 6, 2025 by Melinda Zabritski

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