Leasing Experiences Continued Growth in Q2 2024, According to New Experian Report
Data shows leasing increased across all credit risk tiers
“As the influx of new vehicle inventory persists, a wider range of models are becoming available and dealers and manufacturers are leaning back into leasing as a way to move metal,” said
For example, the average monthly payment for a leased vehicle declined across all credit risk tiers in Q2 2024—with super prime borrowers seeing the average monthly payment decrease from
Among the top leased models in Q2 2024, the Honda CR-V continued to lead at 2.98%, followed by the Tesla Model Y (2.61%) and Honda Civic (2.29%). Rounding out the top five were the Ford F-150 (2.02%) and Chevrolet Silverado 1500 (1.86%).
The vehicle finance market continues to stabilize
The average loan amount for a new vehicle saw a slight increase to
On the used side, the average loan amount declined
Captives continue to lead total and new finance market share
In Q2 2024, captives remained at the forefront of total automotive finance market share, rising to 30.88%, from 28.46% last year. Meanwhile, banks declined from 24.67% to 24.41% and credit unions came in at 20.16%, down from 23.29% in Q2 2023.
Captives also captured over half of the new vehicle finance market share, coming in at 60.56% this quarter, up from 57.30% last year. Though, banks dropped from 22.41% to 21.26% and credit unions went from 14.43% to 10.30% in the same time frame.
For the used vehicle finance market share, credit unions comprised 27.63% in Q2 2024, down from 29.46% in Q2 2023. Banks were not far behind at 26.83% this quarter, up from 26.21% last year and captives slightly grew from 8.39% to 8.45%.
“With captives continuing to offer incentives, it’s expected to see their share grow across the spectrum,” Zabritski continued. “Monitoring the shift in consumer preferences and how it affects the overall market share is important for professionals as they make informed decisions when assisting their respective shoppers.”
Additional findings for Q2 2024:
- Prime and super prime borrowers comprised nearly 70% of the total finance market in Q2 2024.
- New vehicle financing increased to 80.11% this quarter, from 79.91% last year and used vehicle financing declined from 38.98% to 35.84% year-over-year.
- Average loan terms for new vehicles grew from 68.29 months in Q2 2023 to 68.48 months in Q2 2024 and used vehicle loan terms went from 67.38 months to 67.41 months in the same time frame.
- 60-day delinquencies saw a slight uptick from 0.83% last year to 0.85% this quarter.
To learn more, watch the entireState of the Automotive Finance Market Report: Q2 2024 presentation on demand.
About Experian
Experian is a global data and technology company, powering opportunities for people and businesses around the world. We help to redefine lending practices, uncover and prevent fraud, simplify healthcare, deliver digital marketing solutions, and gain deeper insights into the automotive market, all using our unique combination of data, analytics and software. We also assist millions of people to realize their financial goals and help them to save time and money.
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Source: Experian
