agent Entrepreneur logo
MenuMENU
SearchSEARCH

Experian: Shift Toward Used Continues in Q2

SCHAUMBURG, Ill. — Car buyers with prime and superprime credit shifted toward used in greater numbers, with used-vehicle loans for both low-risk tiers reaching record highs in the second quarter, according to Experian Automotive. According to the firm, a record 61.02% of prime consumers chose used vehicle loans, up 1.12 percentage points from a year ... Read More »

September 21, 2017
2 min to read


SCHAUMBURG, Ill. — Car buyers with prime and superprime credit shifted toward used in greater numbers, with used-vehicle loans for both low-risk tiers reaching record highs in the second quarter, according to Experian Automotive.

According to the firm, a record 61.02% of prime consumers chose used vehicle loans, up 1.12 percentage points from a year ago. In the superprime category, a record 44.32% of superprime customers took out used-vehicle loans, 1.06 percentage points higher than a year ago. The shift comes as new-vehicle loan payment reached a record $504, about a $139 difference from the average used-vehicle loan payment.

Ad Loading...

“One of the trends that we’ve consistently seen is all-time highs and record-highs of prime-plus consumers who are choosing a used vehicle,” said Melinda Zabritski, senior director of financial solutions at Experian Automotive, adding that the gulf between payment amounts has played a major role in the new-to-used shift.

The used-vehicle market, however, wasn’t the only solution for car buyers seeking payment relief. Loan terms, which continued to stretch during the period, were also a go-to option in the second quarter.

According to Experian, the 61- to 72-month term band did lead the way in the second quarter, accounting for 40.4% of all new-vehicle loans. However, the 73- to 84-month and 85- to 96-month bands showed the largest growth.

The share of loans in the 73- to 84-month range increased 1.22 percentage points from a year ago to 32.5%, while the 85- to 96-month band increased 0.3 percentage points to 32.5%. Zabritski noted that a majority of loans in the latter range were primarily clustered around 85 months.

Also reaching a new record was the balance of outstanding loans, which increased from $1.027 trillion in the year-ago quarter to a new high of $1.1 trillion. The new high was achieved as delinquencies, which have caused a slight tightening in underwriting standards in recent quarters, showed some improvement.

Ad Loading...

According to Experian Automotive, the 30-day delinquency rate inched down 0.02 percentage points to 2.2%, while the 60-day rate increased slightly by 0.05 percentage points to 0.67%.

The improvement in delinquencies didn’t translate into a loosening of credit standards, however, with the share of subprime lending in the second quarter dropping from 21.46% in the year-ago quarter to a near-record low of 20.57%. Deep subprime also showed no improvement, falling 0.08 of a percentage point to a near low of 3.98%.

“The last time deep subprime was below 4% for a Q2 period was way back in 2012, and it was 3.77%,” Zabritski noted. “The all-time Q2 low was seen back in 2011. It was about 3.64%, but, again, we’re still near historic lows for deep subprime in the total loan market.”


Topics:Industry

More Industry

Blue and white RV parked on beach facing the ocean.
Industryby Lauren LawrenceSeptember 3, 2026

RV Group Expands Carolina Footprint

Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.

Read More →
Photo of two men and one woman on a discussion panel
Industryby Hannah MitchellSeptember 1, 2026

Agent Acumen

An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.

Read More →
Gloved hand holding two wrenches next to “Turn Overdue into Opportunity” Graphic
Industryby Lauren LawrenceAugust 27, 2026

Missed Maintenance Creates Opportunity

As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.

Read More →
Ad Loading...
Mitsubishi shadow line-up
Industryby Hannah MitchellAugust 25, 2026

Mitsubishi Unveils U.S. Plan

The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.

Read More →
Photo of a laptop, cellphone and eyeglasses on a desk next to an office window
IndustryAugust 24, 2026

Selling to Grow

The question of whether you should sell your agency and if so, when, is up to you. But it’s a question worth asking to ensure you keep the business on the right path for yourself, employees and clients.

Read More →
Mechanic holding a vehicle diagnostic device while standing above an open car hood
Industryby Hannah MitchellAugust 24, 2026

Recalled Vehicles Hit 5-Year High

Though the number of events has fallen so far this year, impacted units are up significantly. Meanwhile, regulators consider consumer notification changes.

Read More →
Ad Loading...
outside of car dealership with cars parked in front
Industryby Lauren LawrenceAugust 20, 2026

Auto Group Acquires Top-Performing Rooftop

Car Pros sold its Kia Huntington Beach location to Sutherlin Automotive Group, marking the buyer’s third location in Southern California.

Read More →
Cars from the rear on a Shanghai freeway
Industryby Hannah MitchellAugust 19, 2026

China as Pacesetter

Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.

Read More →
Orange BMW car on empty road.
Industryby Hannah MitchellAugust 14, 2026

BMW Concept Car Makes Fuel to Burn

The prototype developed in concert with a South Carolina university engineering team generates more solar energy than it uses in a typical daily commute.

Read More →
Ad Loading...
Six men standing for photo outside of car dealership
Industryby Lauren LawrenceAugust 13, 2026

South Carolina Auto Group Downsizes

Florida-based group Holler-Classic has acquired four rooftops, its first in South Carolina, from Dick Smith Automotive Group.

Read More →
Ad Loading...