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Rise in New Vehicle Inventory Shifts the Automotive Landscape in Q1 2024

Published: June 4, 2024 by Melinda Zabritski

Car traveling on road

Over the past few years, we’ve seen in-market shoppers lean into the used vehicle space; however, with new vehicle inventory continuing to rebound, we’re starting to see a reversal of fortune. Data in the first quarter of 2024 shows how the resurgence of new vehicle inventory is reshaping the automotive landscape.

According to Experian’s State of the Automotive Finance Market Report: Q1 2024, new vehicle financing increased to 41.93%, up from 37.93% in Q1 2023. Meanwhile, used vehicle financing declined from 62.07% to 58.07% year-over-year.

As a result, lenders witnessed a considerable impact on market share as some manufacturers continue to offer incentives. For instance, captives accounted for its highest share of new vehicle financing since 2010, leading at 61.75% in Q1 2024, up from 54.17% in Q1 2023. On the other hand, banks declined from 23.36% to 20.65% year-over-year and credit unions dropped from 17.02% to 9.69% in the same time frame.

Leasing grows as new vehicle inventory rebounds

As dealers look for ways to move metal and more incentives become available, consumers are choosing to lease.

For example, the percentage of new leasing climbed to 24.12% in Q1 2024, up from 19.33% in Q1 2023. In addition, the average monthly payment for a leased vehicle declined from $602 last year to $595 this quarter.

Interestingly, SUVs made up four of the top five leased vehicles in the first quarter of 2024; with the Honda CR-V at 3.12% and Telsa Model Y at 2.69%. They were followed by the Nissan Rogue (2.35%), Chevrolet Equinox (2.21%), and Honda Civic (2.02%).

Loan amounts continue to stabilize

When taking a deeper dive into the report findings, data shows the average loan amount for a new vehicle decreased from $41,115 in Q1 2023 to $40,634 in Q1 2024. Though, the average interest rate slightly grew to 6.73% this quarter, up from 6.61% last year—resulting in the average monthly payment increasing $3 to reach $735.

On the used side, the average loan amount dropped $498 year-over-year to $26,073 in Q1 2024 and the average interest rate went from 11.40% last year to 11.91% this quarter, leading to an average monthly payment of $523, from $521 in the same period.

As we witness consumer preferences continue to shift, it’s important for automotive professionals to understand the current industry trends in order to properly assist those who are in the market for a vehicle and prepare for what’s to come in the near future.

To learn more about automotive finance trends, view the full State of the Automotive Finance Market: Q1 2024 presentation on demand.

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While many view Experian as a credit bureau, we have a rich history in identifying and analyzing emerging market shifts and consumer behaviors across industries, particularly automotive. In fact, Experian’s Automotive Consumer Trends Report: Q1 2025 is one of our many reports that provide essential intel for automotive professionals navigating today’s competitive landscape. And this quarter’s report sheds light on SUVs (including SUVs and CUVs)—a segment that continues to pique consumers’ interest. Data in the first quarter of this year found 62.8% of new retail registrations were SUVs, accounting for the largest portion of market share over the last 12 months—compared to sedans (18.4%), pickup trucks (16.6%), and vans (2.2%). While overall SUV registrations highlight the growing dominance in this sector, a closer look at the data revealed that electric SUVs are emerging as a contributor to this momentum. In Q1 2025, electric SUVs accounted for 10.5% of new retail SUV registrations—and within that group, 30.7% were registered in the state of California. It’s crucial for automotive professionals to monitor these trends and prepare accordingly as the fuel type continues to grow. Which electric SUV models are catching buyers’ attention? Knowing which types of electric SUVs are attracting consumer interest can enable professionals to align their offerings with market demand. The Tesla Model Y made up nearly half of the new retail SUV registrations for exotic and luxury in the last 12 months, coming in at 40.5%. Interestingly, the next closest model, Ford Mustang Mach-E, trailed behind at 5.8%. Rounding out the top five were the Hyundai IONIQ 5 (5.5%), Honda Prologue (4.9%), and Chevrolet Equinox EV (4.3%). Understanding SUV registrations goes beyond data—it’s about spotting the shift in consumer behavior as this segment as well as the EV fuel type continues to break ground in the automotive landscape. This insight gives professionals the leverage they need to adapt and refine their strategies in the next era of mobility. To learn more about SUV insights, view the full Automotive Consumer Trends Report: Q1 2025 presentation.

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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.

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