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Zoom in on Geographic Data to Inform Strategy

Published: June 10, 2021 by Melinda Zabritski

Woman standing in a car dealership

Data is one of the most powerful tools that lenders and dealers can use to inform their decision making. Looking at trends on a national level is informative, but it can be even more impactful when analyzed at the regional level. When combined, a comprehensive view of data can make all the difference for lenders and dealers when making decisions for their businesses.

New and Used Financing See a Shift in Q1

On a national level, one standout year-over-year change is the breakdown of new and used financing. According to the Q1 2021 State of the Automotive Finance Market report, new vehicles represent a larger portion of the total finance market, increasing from 38.24% in Q1 2020 to 43.20% in 2021. Meanwhile, used financing decreased from 61.76% to 56.80% in the same period.

Loans Remain Most Popular New Vehicle Finance Option

With overall financing on new vehicles increasing across the country, it’s important to dig into what that looks like on a regional level. Across most regions, loans were the preferred method of financing for new vehicles, however, the Northeast saw heavy leasing activity with 46.29% of new vehicles being leased in Q1 2021. Both lenders and dealers can leverage this data to inform expectations and build strategies that address their business on a location-by-location basis.

Regional Differences in Types of Vehicles Financed

Similar to the financing options, there were also regional differences when it came to the types of new and used vehicles financed. For instance, the Ford F150 was the top financed new vehicle in the Midwest (3.54%) and South (3.10%), while the Toyota RAV4 took the top spot in the West (3.48%) and the Honda CR-V led in the Northeast (3.55%).

Looking at used vehicles, we saw similar trends in vehicle popularity, with the Ford F150 landing as the top financed vehicle in the West (3.00%), Midwest (4.08%) and South (3.78%) regions, while the Toyota RAV4 lead the Northeast region (2.52%).

Average Credit Scores Increase Year-Over-Year

On a national level, both new and used vehicle credit scores increased compared to last year. The average new credit score across the country increased six points from 728 in 2020 to 734 this year. Looking regionally, the Midwest generally had a higher credit score, while the South had the lowest.

Meanwhile, the average national used credit score saw an increase of eight points, from 655 to 663 in the same time frame. The Midwest region again led with the highest credit scores, and the South with the lowest.

There is an abundance of valuable data lenders and dealers can leverage when strategizing for their businesses. Looking at data on a national level provides an overall view of the auto finance market, but it doesn’t necessarily tell the whole story. Digging into the data on a regional level, however, can help lenders and dealers identify what is working in some areas, what might not be working in others, and how they can adjust their strategies to maximize their goals, wherever they may be located.

Learn more by watching Experian’s full Q1 2021 State of the Automotive Finance Market report.

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Published: September 5, 2025 by Melinda Zabritski

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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Published: March 6, 2025 by Melinda Zabritski

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