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Auto Loan Delinquencies Fell in Q1

Experian report shows other shifts, including banks clawing back market share.

June 5, 2025
Auto Loan Delinquencies Fell in Q1

Banks’ share of auto financing grew year-over-year from 25% to 27%, while captives’ share fell from 31% to 30%.

Credit:

Pexels/Sora Shimazaki

2 min to read


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.

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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%.

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“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

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