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

Experian Automotive Series | What Auto Marketers Are Prioritizing in the Second Half of 2025 As we close out our four-part series on what auto marketers are prioritizing in the second half of 2025, we’re shifting gears from strategy to execution. It’s time to explore how marketers are operationalizing data, seeking clarity, and building emotional connections that deepen relationships with customers. With the end of the year’s competitive automotive landscape, clarity and connection aren’t just buzzwords—they’re the cornerstones of growth and loyalty for 2026. Let’s start by exploring how clarity empowers today’s marketers to steer their strategies with control. Clarity: Putting marketers in the driver’s seat Data-guided auto marketers who leverage data insights have a clearer understanding of where consumers are on their car-buying journey. You can learn whether car buyers are gearing up for: A longer commute and want an electric vehicle (or a hybrid vehicle).1 Expanding their family and want a top-tier safety rating with cargo space. Factoring in market trends and wanting to be more economical.2 Creating a new and loyal customer base requires dealers, marketers, and OEMs to focus on clarity and connection. This will be more relevant than ever in the final days of 2025. Gone are the days when dealers and agencies used platforms and tools they did not understand. More businesses are simplifying their services and products by offering guides, Artificial Intelligence (AI) tools, tutorials, consultants, and webinars. At Experian Automotive, we're here to do just that, bringing clarity to our auto solutions, such as the Experian Marketing Engine (EME). While the EME tool has robust and dynamic data, two of our most widely used features — AutoAudiences and AutoInsights — stand out for their impact. Let’s break them down in the simplest way: AutoInsights helps marketers define where, what, and how. AutoAudiences helps reach who to target and when they might be in the market. For further clarification, savvy marketers leverage AutoInsights to strategize and understand their market, then activate AutoAudiences to curate marketing opportunities. With these tools empowering clarity, it’s equally important to focus on building genuine connections with car shoppers. Connection: Personalized experiences that drive sales Building a strong connection starts by truly understanding what consumers need and where they are on their car-buying journey. It’s important to know how consumers plan to use their vehicle and how they have serviced their cars in the past (or how they plan to service them in the future). By focusing on these details, marketers and dealerships can create more meaningful relationships and deliver helpful, relevant experiences that customers value. On the journey to better connections, consider your customers’ communication preferences, 2026 plans, and affordability.3 “Human connection...separates good stores from great ones,” notes Dealer Principal, Matt Birckhead at Sir Walter Chevrolet4 , while General Manager, Michael Wood at Jaguar Land Rover Virginia Beach collaborates with his Digital Director, Ryan Montville, to generate vehicle specs and feature descriptions that connect emotionally with target buyers 5. Key Takeaway: Automotive marketers who leverage data-informed clarity and authentic customer connection are best positioned to drive growth and loyalty in the final days of 2025 into 2026. By using innovative tools like Experian Marketing Engine, focusing on consumer needs, and personalizing every interaction, dealerships, agencies, and OEMs can optimize campaigns and foster lasting relationships. Mastering clarity with data and building emotional connections are the keys to success in automotive marketing today. Ready for clarity and connection with Experian data? Lead the way in creating customer-first experiences that fuel long-term growth. Connect with Experian Automotive and start driving measurable impact. Learn More https://www.coxautoinc.com/insights-hub/q3-2025-ev-sales-report-commentary/https://www.experian.com/automotive/auto-credit-webinar-formhttps://news.dealershipguy.com/p/inside-q4-s-new-vehicle-trends-and-how-dealers-are-adjusting-2025-10-28 https://news.dealershipguy.com/p/one-price-vs-negotiation-what-four-operators-say-really-builds-trust-and-gross-2025-10-16 https://news.dealershipguy.com/p/5-powerful-chatgpt-hacks-car-dealers-are-using-to-supercharge-their-business-insights-2025-09-19

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.

Without data, anticipating buyer behavior in the months ahead can be challenging. While some OEMs had record sales¹ this spring, it remains critical to identify who’s in the market—whether to purchase or service their vehicle. With tax refund season in the rearview mirror and summer promotions approaching, consumers may be weighing their next move. Some could have “one foot in the showroom door” while others are waiting to see which dealer delivers the most compelling offer. Meanwhile, 41% of drivers choosing to keep their vehicles longer² are likely focused on maintaining them. So how can you best position yourself?  Explore These 3 Strategic Moves to Navigate This Summer:  Firm up your Service Marketing Plan: With summer road trips on the horizon, your customers may be in the market for services like A/C repair, wheel alignment, tire rotation, engine cooling, oil changes, multi-point inspections, and more. Discover who’s most likely to need service in the next 30–60 days with Experian Automotive’s AutoAudiences. Understand Customers’ Communication Preference: To effectively target your audience, start by understanding how they would prefer to communicate. As Car Dealership Guy puts it, “The shift in consumer preferences is undeniable and generational.”³ Experian Automotive’s Product Management Director, Kirsten Von Busch echoes this, adding, “Understanding generational differences is crucial to developing effective marketing strategies that resonate with each group’s unique preferences”. Experian’s Automotive Consumer Insights support this approach with data-driven messaging and communication channel recommendations.  Focus on Growing Market Share with Mid-Year Auto Trends: Two purchase types that are trending in the beginning half of the year include Leasing⁴ and Trade-In. Whether you have EVs or AWD vehicles on your lot, consider (A)ll (W)eather (D)eals that can (1) Supersede those in your backyard as part of your Conquest strategy and (2) Build upon your “Why Buy” dealer loyalty.  Experian Marketing Engine powers automotive marketing by helping automotive marketers identify the right audience, uncover the most appropriate communication channels, develop messages that resonate and measure the effectiveness of their marketing activities. Timing is everything, so start Targeting and Conquesting in your Market today!  Sources:  http://www.autonews.com/retail/sales/an-april-us-sales-2025-0501/  https://news.dealershipguy.com/p/3-real-time-shifts-in-car-buying-behavior-post-tariff-announcements-2025-05-01  https://news.dealershipguy.com/p/dealers-are-saving-thousands-in-labor-in-fixed-ops-2025-05-30 https://www.experian.com/blogs/insights/auto-the-current-state-of-ev-financing-why-more-consumers-are-choosing-leasing/