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SUVs Continue to Dominate the Automotive Finance Market in Q1 2022

Published: June 29, 2022 by Melinda Zabritski

business woman in auto salon. concept of female driver

We witnessed many changes in the automotive industry since the beginning of the pandemic, but one thing that has stayed consistent is consumers’ desire for larger vehicles, such as SUVs and crossover utility vehicles (CUVs). In fact, they have sustained dominance in the automotive finance market for some time now—partly due to the advancements among newer models, such as increased fuel efficiency and additional cargo space.

According to Experian’s State of the Automotive Finance Market Report: Q1 2022, SUVs and CUVs made up 60.38% of total vehicle financing, an increase from 58.95% in Q1 2021.

Since consumer preferences for larger vehicles have become more prominent, we’ve seen the average loan amounts rising for a while—but this has been exacerbated by the pandemic, with inventory shortages and high consumer demand becoming a core challenge in the automotive industry.

In Q1 2022, the average monthly loan payment for a new vehicle was $648, compared to the average monthly lease, which increased to $522. And the average monthly payment for a used vehicle surpassed $500 this quarter, coming in at $503.

Larger vehicles dominate top leased models

While consumers often lean towards used vehicles as they search for the most budget-friendly option, another option to consider is leasing, as they tend to have a lower monthly payment than a loan. In Q1 2022, there was a $126 difference between average monthly payments of a lease and a new loan.

This is why it’s important for professionals to understand the most prevalent leased vehicles on the market and their price points. This enables them to assist consumers when searching for a vehicle that fits their needs and budget.

With consumers opting for larger, more expensive vehicles such as SUVs, CUVs and full-size pickup trucks, it’s no surprise they made up majority of the top 10 leased models in Q1 2022.

Top 10 leased models Q1 2022

While the Honda Civic made up the highest percentage, it is important to note that it was the only sedan among the top leased vehicles in Q1 2022, accounting for 2.25% of leasing.

It’s really in the new CUVs and SUVs where you can see the difference in monthly payments between a loan and a lease. For instance, the Mazda CX-5 had an average monthly loan payment of $460 this quarter and the average monthly lease payment was $365. While the Chevrolet Equinox was not too far behind, with an average monthly loan payment of $444 and an average monthly lease payment of $319 in Q1 2022.

Consumers have also opted for new CUVs, such as the Honda CR-V, which had an average monthly loan payment of $474 and an average monthly lease payment of $371. Similarly, the Ford Escape had an average monthly loan payment of $436 and the average monthly lease payment was $349.

As we continue to witness automotive financing trends evolve, analyzing the ongoing insights will enable dealers and lenders to help consumers find the most budget-appropriate options in their search for a vehicle that best fits their needs.

To learn more about leasing and other automotive finance trends, watch the entire State of the Automotive Finance Market: Q1 2022 presentation on demand.

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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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Quick Summary: Leasing continues to increase in the electric vehicle (EV) market. EVs accounted for nearly 20% of all new vehicle leases in Q4 2024, up from only 2.11% of new vehicle leases four years ago in Q4 2020. With consumers looking for flexibility—both in monthly payment and model availability—we’re seeing leasing continue to surge in the electric vehicle (EV) market. According to Experian’s State of the Automotive Finance Market Report: Q4 2024, EVs accounted for 19.5% of all new vehicle leases this quarter, up from 11.7% last year and a substantial increase from 2.1% in Q4 2020. Diving a bit deeper, data found EVs accounted for 9.3% of all new purchases in Q4 2024. Of those EVs, 50.1% were leased, while 38.9% were financed through loans. With lease payments for EVs ultimately being more affordable compared to loans and the excitement of driving the latest models packed with advanced technology, it’s no surprise we’re seeing leasing grow in popularity. Top leased EVs: How do lease and loan payments compare? As more consumers transition to EVs and manufacturers introduce new options to their lineup, certain models have become top choices for those opting to lease. Tesla accounted for the top two leased EVs in Q4 2024, with Tesla Model 3 coming in at 12.2% and Tesla Model Y at 9.1%. However, the Honda Prologue followed closely at 8.8% this quarter. Rounding out the top five were Hyundai IONIQ 5 (6.9%) and Chevrolet Equinox EV (5.9%). It’s notable that leasing has traditionally been a value-driven option for consumers, and the same holds true in the EV market. Leasing continues to offer lower monthly payments, making the finance option stand out for those looking to test an EV before purchasing or simply wanting the latest model on the lot. In Q4 2024, the average payment difference between a loan and a lease was $175. Though, the average monthly payment to lease a non-luxury EV was $504 this quarter, noting a $205 difference compared to the $709 loan payment. By comparison, the average monthly payment between a loan and leased luxury EV was $98—coming in at $842 for a lease and $940 for a loan. As more consumers choose to lease EVs, automotive professionals in both new and used markets have a chance to capitalize on this trend. By leveraging this data, those in the new retail market can effectively reach the right audience, while those in the used market can stay ahead of the curve and prepare for the influx of off-lease models in the coming years. To learn more about automotive finance trends, view the full State of the Automotive Finance Market: Q4 2024 presentation on demand.

Published: March 6, 2025 by Melinda Zabritski

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