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Use Data to Inform Strategy for the Recovery and Beyond

Published: January 26, 2021 by Guest Contributor

Experian automotive market insights text with dashboard example

It goes without saying that the automotive industry has been through a lot this past year. Initially hit hard during the early days of COVID-19, it has been resilient and shows signs of rebounding. But despite the recovery, it’s hard to overlook the fact that the automotive industry and the rest of the economy have encountered two large-scale downturns within the last 12 years. And while the underlying factors behind the Great Recession and COVID-19 are considerably different, auto dealers are likely left wondering how to continue to stimulate the recovery, but more importantly, protect and prepare themselves from future downturns.

In short, the answer is data.

If we’ve learned anything from the unprecedented events of this year, it’s that trends can shift and change rapidly. We’ve observed correlations between certain economic indicators and the potential impact to the industry. Now, more than ever, dealers should be leaning into data to stay close to trends in real-time, adjusting strategy accordingly.

It might feel overwhelming to stay on top of it all, but dealers don’t have to face it alone. To help dealers maximize data, we launched Experian Automotive Market Insights. The dashboard provides a variety of insights, including auction volume by region, vehicles coming off-lease, off-loan or have positive equity, correlations between economic events and finance trends. In addition, dealers can use a range of economic indicators to scenario plan and gauge how far in advance these trends may impact the automotive industry.

This level of information can help auto dealers tackle their biggest challenges and create a more comprehensive strategy for their businesses. They can use the insights in a variety of ways, such as how to restock amid inventory shortages or uncover conquest opportunities to drive sales growth. For example, since the beginning of September, the highest volumes of vehicles at auction are in the central, east, southeast and southwest regions—all above 137,500 units.

Of course, as this year has proven, it’s not enough to just tackle the immediate challenges. Dealers will also need to address and prepare for larger economic issues before they occur. For instance, understanding how unemployment may potentially alter vehicle registrations. Based on Experian data, the lag time between the peak of unemployment and decline in vehicle registrations was approximately one month. This level of insight provides dealers with an opportunity to adjust their strategies and budgets ahead of economic crises.

We can’t predict the future, but we can use history to inform our decisions moving forward. While every economic downturn is different, understanding how certain events impact the automotive market is important for dealers to prepare their strategies. Leveraging data is crucial for staying on top of trends, and pivoting business decisions in challenging times.

Visit Experian Automotive Market Insights for more information.

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Published: June 17, 2025 by Chanté O’Neill

While many industry pundits are assessing how macroeconomic changes may impact the future of the automotive market, recent data suggests consumers tend to stick to specific fuel types. According to Experian’s Automotive Market Trends Report: Q4 2024, over the last 12 months, 77.5% of electric vehicle (EV) owners replaced their EV with another one, with 15.6% returning to gas-powered vehicles. Meanwhile, 82.2% of gas vehicle owners replaced it with the same fuel type, while only 4.7% made the switch to electric. It’s important for professionals to recognize that most consumers tend to replace their vehicles with the same fuel type. Additionally, knowing who is making these purchases and the types of vehicles being registered allows better anticipation for consumer needs and ultimately enhances the buying experience while fostering consumer loyalty. Breaking down fuel types by generation Through Q4 2024, Baby Boomers predominantly registered new gasoline vehicles, accounting for 74.7% of their choices, while 15.9% opted for hybrids and 6.6% chose EVs. Millennials showed a similar trend, with 69.2% registering gas vehicles, followed by 15.1% selecting hybrids and 12.5% choosing EVs. Gen Z also favored gasoline vehicles at 74.0%, with hybrids making up 14.3% and EVs at 9.1% of their registrations. Although gasoline vehicles account for the majority of new registrations, EVs and hybrids are steadily gaining ground, particularly among the younger generations who are drawn to advanced features that align with their preferences. This will likely play a role in shaping the future of vehicle registrations as more gas alternative models hit the market and consumers make the switch. To learn more about vehicle market trends, view the full Automotive Market Trends Report: Q4 2024 presentation on demand.

Published: April 2, 2025 by John Howard

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Published: January 10, 2025 by John Howard

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