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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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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.

Published: September 5, 2025 by Melinda Zabritski

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Amid interest rates leveling out and some lenders reassessing go-to-market strategies, the automotive finance landscape is experiencing notable shifts in market share. According to Experian’s State of the Automotive Finance Market Report: Q1 2025, banks recouped some of their total finance market share for the first time in several years, reaching 26.6% during the quarter, up from 24.8% a year ago. On the other hand, captives’ total market share declined from 31.3% to 29.8% year-over-year and credit unions experienced a modest increase from 20.2% to 20.6%. Despite the overall market share shifts, captives continue to lead in new vehicle financing at 57.1% in Q1 2025, although down from 62.1% the year prior. Meanwhile, banks increased to 24.1% this quarter, from 20.4% in Q1 2024 and credit unions went from 9.6% to 10.9% during the same period. On the used side, banks and credit unions were grouped much closer together. Banks led the way with 28.4% of the used finance market in Q1 2025, up from 27.9% last year, while credit unions went from 27.7% to 28.2% year-over-year and captives declined from 8.5% to 7.4%. As market share movement continues to be a valuable indicator of shifting strategies and consumer behavior, it’s important for automotive professionals to keep a close eye on these shifts to uncover new opportunities while looking for ways to stay ahead of the rapidly evolving industry. Breaking down the latest finance trends Data in the first quarter of 2025 shows the automotive finance market continues to stabilize as automotive professionals gain clearer visibility into lender behavior and consumer demand. For example, the average loan amount for a new vehicle increased $1,110 year-over-year to $41,720 in Q1 2025. However, the average interest rate dropped from 6.9% to 6.7%, and the average monthly payment went from $737 last year to $745 this quarter. For used vehicles, the average loan amount saw a slight uptick of $90 year-over-year, reaching $26,144 this quarter. Meanwhile, the average interest rate declined from 12.4% last year to 11.9% this quarter and the average monthly payment trended lower at $521, from $524 in Q1 2024. Monitoring and leveraging market share shifts and financing trends can support strategic planning while empowering automotive professionals to anticipate consumer purchasing patterns and tailor conversations more effectively to meet buyers where they are during their car buying journey. To learn more about automotive finance trends, view the full State of the Automotive Finance Market: Q1 2025 presentation on demand.

Published: June 5, 2025 by Melinda Zabritski

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