Lower Auto Finance Delinquency Rates; Continued Popularity of Used Vehicles in Q1

by Melinda Zabritski 2 min read June 15, 2020

The automotive industry is in the midst of weathering an unexpected storm due to COVID-19. As the Q1 2020 numbers rolled out, everyone was curious to see what the delinquency rates would tell us, and based on the data alone, it tells a positive story: delinquencies were down in Q1 2020.

In Q1 2020, 30-day delinquencies decreased from 1.98 percent in Q1 2019 to 1.93 percent, while 60-day delinquencies dropped from 0.68 percent to 0.67. However, it’s important to note, the pandemic wasn’t officially declared a national emergency until the middle of March. Additionally, consumers are likely leveraging financial resources and assistance programs, such as stimulus checks to manage through financial hardship, meaning the pandemic’s true impact may not be evident until the months ahead.

That said, Q1 data can still be informative as lenders and dealers create strategies to move forward. For instance, the trend of prime consumers continuing to select used vehicle financing. In Q1 2020, prime consumers comprised 50.47 percent of used vehicle loans. As this trend has been ongoing for a while, we took a closer look at where used vehicle loans were most common.

Mississippi topped the list, with used vehicle loans making up more than three-quarters of automotive loans in the state. In fact, this was true across the top nine states.

Chart detailing the top ten states with the highest used vehicle loan percentages

The trend towards used vehicles continues as automotive affordability remains a prominent topic of discussion. With many vehicles coming off-lease over the past few years, there are late-model vehicles available—these often offer many of the same features of a new vehicle but at a lower price point.

In addition to finance trends, dealers and lenders should assess the sales trends and consumer sentiment in their local markets. The pandemic created a fluid situation for many Americans and understanding how consumers are reacting to COVID-19 will help inform strategies moving forward. For instance, as of June 1, only 14 percent of survey respondents are considering buying a new vehicle in the next few months—of those 37 percent plan to buy something less expensive than originally planned.

While many aspects of our current situation are unlike anything we’ve experienced before, we know the automotive industry is resilient. Keeping a pulse on trends, sentiment, and other data points can help lenders and dealers make informed decisions and help address consumers’ most pressing needs in the days to come.

To view the entire Experian Q1 2020 State of the Automotive Finance Market report, or to watch the webinar, visit https://www.experian.com/automotive/automotive-webinars.html

Related Posts

Cash Flow Insights: Powering the Next Evolution in Lending

For decades, credit data has given lenders a trusted foundation for assessing risk. Now, consumer-permissioned cash flow data is adding another layer of insight into consumers’ financial lives, including income, spending, liquidity and changing financial obligations. The opportunity is significant. Nearly one in five consumers lacks access to or has damaged credit. New Experian research also shows that 60% of consumers who have previously been denied credit or received less favorable terms than expected believe the outcome would have been different if lenders had considered their recent income and banking activity alongside their credit history. 1,2 For lenders, cash flow insights can provide additional context about a consumer’s financial capacity and support more informed underwriting decisions. The next challenge is making those insights easier to use consistently and responsibly at scale. What are cash flow insights? Cash flow insights are derived from consumer-permissioned banking data and provide visibility into how money moves into and out of a consumer’s accounts. Depending on the information available, cash flow data can provide insight into financial behaviors such as: Income and income stability: Regular and irregular income streams and changes over time Spending and recurring expenses: Everyday spending patterns and ongoing financial obligations Account balances and liquidity: Available funds and changes in account balances Debt obligations: Loan payments and other recurring debt commitments Cash flow patterns: How money moves into and out of accounts over time Traditional credit information provides a rich history of how consumers have managed credit. Cash flow insights add context about their current financial activity and capacity, providing lenders with a more complete view of financial health. Cash flow insights can also add predictive value to risk assessment. Experian analysis shows Cashflow Score can deliver up to a 25% lift in predictive performance over conventional credit scores when tailored to targeted risk tiers.3 How lenders can put cash flow insights to work at scale As interest in cash flow insights grows, the conversation is moving beyond what the data can reveal to how financial institutions can use it consistently and responsibly. That requires standardized consumer reporting, clear governance and decision-ready insights that can work within established lending processes. The launch of Experian Cashflow Data Bureau at Vision 2026 reflects this shift from access to adoption. The new consumer reporting agency operates under the Fair Credit Reporting Act (FCRA) and is designed to help financial institutions adopt consumer-permissioned cash flow insights at scale. A key part of that foundation is the cash flow consumer report, which organizes consumer-permissioned banking information into a standardized consumer report regulated under the FCRA. This gives lenders a consistent foundation for incorporating cash flow information into lending decisions while providing consumers with access to the information in their report. Turning greater visibility into better decisions The next evolution in credit isn’t about choosing between traditional credit and cash flow data. Each provides a different perspective. Traditional credit information offers deep insight into how consumers have managed credit over time. Cash flow insights can add context about financial activity and capacity. Bringing those perspectives together can give lenders greater visibility into consumers’ financial health and help them better distinguish between risk and resilience, support more informed decisions and identify opportunities to responsibly expand access to credit. As cash flow adoption continues to grow, its value will come from how effectively it complements the information lenders already use. The opportunity isn't simply to see more data. It's to turn that additional visibility into smarter, more informed decisions. Explore how Experian Cashflow Data Bureau is helping financial institutions put consumer-permissioned cash flow insights into practice at scale. Learn more [1] Federal Reserve Bank of New York, The Market for Credit Building: Demand, Product Characteristics and Consumer Uses, 2026. [2] Experian commissioned Atomik Research to conduct an online survey of 2,000 U.S. adults age 18+. Fieldwork took place July 16–21, 2026. Margin of error: +/- 2.2 percentage points at a 95% confidence level. [3] Based on Experian analysis when Cashflow Score is compared with conventional credit scores, tailored to targeted risk tiers. Predictability based on KS.

October 14, 2026 by Julie Lee
The Three Onboarding Fraud Pain Points That Slow Growth (And How to Solve Them) 

Effective fraud prevention is critical to balancing security and customer experience during onboarding. Learn more!

October 12, 2026 by Charles Hunter
How Rental Data Is Expanding Financial Opportunity for Millions of Renters 

Discover how rental payment reporting can expand credit access, strengthen credit profiles and improve risk assessment for renters and housing providers.

October 8, 2026 by Manjit Sohal

Subscribe to our Newsletter

Enter your name and email for the latest updates.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Subscribe to our Newsletter

Don't miss out on the latest industry trends and insights!
Subscribe