Revived new-vehicle inventory has brought a wave of changes across the auto retail market, including the return of leasing and the migration of some shoppers from used to new, Experian says in a first-quarter report.
The shift of many back to the new-vehicle market also reshuffled the share of auto lending, returning more business to captives than that segment has seen in nearly 15 years.
“The return of new vehicle inventory has had a ripple effect across the automotive finance market,” said Melinda Zabritski, Experian head of automotive financial insights.
New-vehicle leasing surged 5% year-over-year to 24% as the average monthly lease payment fell $7 to $595, Experian said.
Meanwhile, captives’ new-vehicle financing market share jumped to about 62%, the highest point since 2010.
The average new-vehicle loan amount fell nearly $500 year-over-year to $40,634, with an average interest rate of 6.73%, up from 6.61%.
Quarterly results showed electric-vehicle interest among lessees is growing, perhaps as a way to test the power train technology without a long-term commitment as the mass market continues to take a wait-and-see approach to EVs. Experian said leasing comprised 35% of EV financing in the quarter, up 12%.
“As technology evolves and infrastructure continues to develop, it’ll be interesting to see the buying preferences for these consumers once they come off lease,” Zabritski said.
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