Auto Loan Delinquencies Fell in Q1
Experian report shows other shifts, including banks clawing back market share.

Banks’ share of auto financing grew year-over-year from 25% to 27%, while captives’ share fell from 31% to 30%.
Pexels/Sora Shimazaki
Auto loan delinquencies stopped growing in the first quarter, according to Experian data.
The period also saw banks regain market share after losing ground to captives following the pandemic.
Thirty-day loan delinquencies held about steady at 2%, as did 60-day delinquencies, at about 1%, Experian reported.
Still, both the new- and used-vehicle average loan amounts rose year-over-year, the new by 3% to $41,720 and the used by $90, or less than 1% to $26,144. The new-vehicle average monthly payment also increased, by 1% to $745, while the used-vehicle payment was essentially flat at $521.
The average interest rate fell slightly for both new- and used-vehicle loans, the former to 6.7%, and the latter to 11.9%.
New-vehicle loans’ share of the quarter’s auto financing grew from 41% to 43%, Experian said.
Banks’ share of auto financing grew from 25% to 27%, while captives’ share fell from 31% to 30%, the data provider and consumer credit reporting agency said. Credit unions’ share was essentially flat at about 21%.
“This shift counters many of the trends we observed in the post-pandemic era, where high interest rates and the re-emergence of new inventory allowed captives to push heavy incentives and capture significant market share,” Experian Head of Automotive Financial Insights Melinda Zabritski said in the quarterly report.
Leasing of new vehicles grew from 24% to 25%, partially driven by electric-vehicle transactions, 60% of which were leases. Overall EV transactions made up almost 10% of new-vehicle sales.
LEARN MORE: Under-Water Auto Loans on the Rise
Originally posted on F&I and Showroom
More F&I

Get Ahead of the Change
A strong culture, among other things, will be a key differentiator for auto dealerships as the market speeds ahead to new heights, says industry veteran Joel Kansanback.
Read More →
F&I Without the Handoff
Get more familiar with what your dealer clients are really buying when they entrust you with finance-and-insurance.
Read More →
Affordability Shapes Auto Demand
Auto originations increased 1% in the first quarter, and electric vehicles are rebounding, according to TransUnion's latest credit report.
Read More →
The Evolution of Agency Development in Modern F&I
General agents have a different roadmap for success than their predecessors. It will pay for them to follow it in order to be true dealer partners.
Read More →
Four-Figure Loan Payments on the Rise
A LendingTree analysis found that location, age and credit score play a role in the rising amount of auto loan borrowers who make monthly payments of $1,000 or more.
Read More →
APCO Holdings Acquires Fidelity Dealer Services
The finance-and-insurance product provider says the addition strengthens EasyCare’s reach across key markets.
Read More →
Tariffs Could Raise Insurance Premiums
As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.
Read More →
Smaller Loans, Longer Terms
The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.
Read More →
Ensure Your Clients Are Sure About Reinsurance
Industry experts recently broke down the complicated profit center at Agent Summit. Learn what’s relevant and what’s new to share with your dealers.
Read More →
Car Loans More Plentiful
May access opens up, as risk segments figured largely in the increased availability, Cox Automotive reported.
Read More →