Banks captured auto loan and lease share from credit unions, captives and buy-here, pay-here lenders in the second quarter, according to Experian‘s second-quarter State of the Automotive Financing Market report published today.
Banks’ total financing – both loans and leases for new and used vehicles – increased year over year to 32.7% from 30.2%. By comparison, credit unions’ share of total financing dropped 2.3% year over year to 19.8%. Captives gave up about 1% of their total share, tallying 28.6% in the second quarter. Buy-here, pay-here lenders’ share of auto financing slipped 10 basis points to 6.7%.
Banks also grabbed a larger share of the growing used-vehicle financing pie in the quarter. Banks snapped up 2.7% more used-car volume year over year, as credit unions’ share dropped that same amount.
The shift to used vehicles comes as vehicle loan amounts continues to rise. New-car loans averaged $32,119, while used-vehicle loans hit $20,156 last quarter. Average monthly payments were $550 and $392 for new and used, respectively. Loan terms, too, reached record highs, extending to 69.17 months for new and to 64.82 months for used.
Separately, the report showed a record ratio — 57% — of prime and super-prime consumers opting for used vehicles in the second quarter.
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Source : AutoFinanceNews
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