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Used Vehicles and SUVs Remain Prominent in Q3 2022

Published: December 6, 2022 by Melinda Zabritski

Young couple discuss the purchase of a new car with salesman

The automotive market continues to evolve. Hit with challenges like the inventory shortage, the response has been dynamic, as lenders and dealers look for creative ways to serve their customers.

Experian’s State of the Automotive Finance Market Report: Q3 2022 found that consumers with credit scores between 300 and 660—also considered as the nonprime segments—are continuing to opt for used vehicles rather than new. In addition to that, consumers overall are preferring larger vehicles such as SUVs over sedans.

In Q3 2022, used vehicles comprised 61.68% of total vehicle financing, an increase from 59.66% the previous year. With used vehicles typically having a higher volume and monthly payments that are considerably lower than new vehicles, it’s not out of the ordinary for used to make up a larger portion of automotive financing.

For example, the average monthly payment for a used vehicle went from $472 in Q3 2021 to $525 in Q3 2022. In comparison, the average monthly payment for a new vehicle was $700 this quarter, an increase from $618 this time last year.

In Q3 2022, the used vehicle loan amount increased 8.59% year-over-year, a significantly lower increase from Q3 2021, when average loan amounts jumped 21.37% year-over-year. This is certainly a positive trend for consumers who are in the market for a used vehicle and could also signal the finance market normalizing, with used vehicle values increasing at a more expected rate.

Larger vehicles dominate financing share

When looking at what consumers are financing, SUVs have comprised the majority of financing for quite some time. In Q3 2022, SUVs made up 60.40% of financing, an increase from 58.03% in Q3 2021, while full-size pickup trucks grew from 15.84% to 17.19% year-over-year. In comparison, sedans decreased from 20.38% in Q3 2021 to 17.61% in Q3 2022.

Larger vehicles sustained dominance in the automotive industry is partly due to the rise of crossover vehicles, which consumers appreciate because of the additional cargo space without completely sacrificing fuel efficiency.

While it appears that things may be leveling out in the automotive finance market, it is important to stay close to the data and trends to better understand the evolving marketplace. The automotive industry continues to be ever-changing, and lenders and dealers who leverage data-driven decision making will be best positioned to manage any future changes.

To learn more about automotive finance trends, watch the entire State of the Automotive Finance Market: Q3 2022 presentation on demand.

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Vehicle price. Monthly payment. Loan terms. Interest rates. Those are the more prominent buzz words dealers hear from consumers throughout the vehicle shopping process, particularly in our current environment. And rightfully so, in-market shoppers are hoping to get the most value for their wallets. But let’s not forget how valuable transparency can be, especially with used vehicles. Hidden damage from accidents or natural disasters, as well as title brands, among other factors, can have a significant negative impact on the drivability of any given vehicle. Ensuring consumers have visibility to that information can help them make a more informed purchasing decision, and more importantly, help dealers potentially build a lifelong relationship with them. Plus, consumers want that information. According to a recent Experian survey [1], nearly all respondents (98%) said a vehicle history report is important to them when considering the purchase of a used vehicle. Furthermore, almost 70% said accident history information in a report would likely influence their purchasing decision, followed by frequent repairs (61%) and title problems such as salvage or flood damage (55%). Given the significance of used vehicles in the automotive market, having tools such as Experian AutoCheck® vehicle history reports readily available on dealership and manufacturer websites can help buyers make more informed decisions. Where today’s consumers start their vehicle search Knowing what resources consumers are using to search for their next vehicle plays a role in identifying where they’re gathering their information, and in turn, can help guide dealers in offering relevant information during the decision-making process. The survey revealed that 64% of consumers browse dealership websites and 46% look at manufacturer websites during their buying process. In a competitive market, having instant access to a vehicle’s history can help streamline the shopping experience while allowing buyers to feel more confident and drive conversions. Leveraging this information will allow businesses to tailor their consumer engagement strategies to meet the specific needs or concerns of potential buyers at each stage of the journey. To learn more, visit Experian AutoCheck® Vehicle History Reports. [1] Experian commissioned Atomik Research to conduct an online survey of 2,005 adults throughout the United States. The sample consists of adults who estimate they will purchase or lease their next vehicle within the next 24 months or sooner. The margin of error is +/- 2 percentage points with a confidence level of 95 percent. Fieldwork took place between March 24 and March 27, 2025.

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