Automotive Finance Market Reshaped as New Vehicle Inventory Rebounds in First Quarter of 2024

Experian Report Shows Captives Dominating New Vehicle Market Share

In a recent report released by Experian, it was revealed that captives accounted for the largest new vehicle market share since 2010. The report, titled State of the Automotive Finance Market Report: Q1 2024, highlighted the shifting trends in the automotive finance market.

With new vehicle inventory rebounding and manufacturers offering incentives, consumers are returning to the new vehicle market. Captives’ market share for new vehicle financing surged to 61.75%, the highest level in over a decade. On the other hand, banks saw a decline in market share from 23.36% to 20.65%, while credit unions dropped from 17.02% to 9.69% year-over-year.

Melinda Zabritski, Experian’s head of automotive financial insights, noted that the return of new vehicle inventory has had a significant impact on the market. The resurgence of leasing is also being observed, with new vehicle leasing experiencing a notable increase to 24.12% in Q1 2024.

SUVs dominated the top leased vehicles in Q1 2024, with models like the Honda CR-V and Tesla Model Y leading the pack. Additionally, EVs accounted for 8.56% of all new vehicle financing, with consumers showing a growing interest in leasing EVs.

The report also highlighted the average loan amounts and monthly payments for new and used vehicles, as well as the increase in delinquencies in Q1 2024. Overall, the data points to a shifting landscape in the automotive finance market, driven by changing consumer preferences and market conditions.

For more insights from the Experian report, interested parties can watch the full presentation on demand. The findings shed light on the evolving trends in the automotive finance industry and provide valuable information for stakeholders in the market.