FI showroom red and grey logo
MenuMENU
SearchSEARCH

Payment Gap Between New and Used Hits All-Time High in Q2, Experian Reports

The rise in new-vehicle prices continued in the second quarter, with more consumers turning toward the used market and leasing. Loan terms also continued to stretch.

by Staff
August 27, 2015
3 min to read


SCHAUMBURG, Ill. — Experian Automotive reported today that the gap between the average monthly payments for new and used vehicles during the second quarter reached a record $122 — the largest margin since Experian began publicly reporting auto finance data in 2008.

According to the firm, the average monthly payment for a new vehicle was $483, while the average monthly payment for a used vehicle was $361. But not only did the monthly-payment gap widen during the quarter, so did gap in total loan amounts, with the average new-vehicle and used-vehicle finance amounts reaching $28,524 and $18,671, respectively — a difference of $9,853.

Ad Loading...

“As the price of new vehicles continues to rise, and the gap between monthly payments for new and used vehicles widens, we see more and more consumers looking for ways to keep their vehicle payments affordable,” said Melinda Zabritski, Experian’s senior director of automotive finance. “This could be especially true for consumers who have the financial ability to pursue a new vehicle but may have sticker shock at the rising prices and don’t want the accompanying high monthly payments.”

And consumers took advantage of stretching loan terms to keep their monthly payments affordable, especially for used vehicles. According to Experian, the percentage of used vehicles financed for 73 to 84 months increased by 14.8% from a year ago to 16.1% — the highest percentage on record. Additionally, new vehicles financed for the same term length climbed 19.7% from a year ago to 28.8% in the second quarter.

Leasing also continued to be a popular option for payment-conscious car buyers, with the transaction type’s share of all vehicles financed during the quarter rising 30.2% from a year ago to 31.5%. And according to Experian’s analysis, lease terms extended past the 36-month average into the 37- to 48-month range, an 18% increase. Additionally, the average lease payment dropped $13 a month from a year ago to $394.

“The automotive finance market continues to progress in response to consumer demand,” said Zabritski. “The availability of different financing options allows consumers to stretch their dollar and more easily find a vehicle that meets their budgetary needs.”

Experian Automotive also reported that the share of used-vehicle financing rose from 53.8% one year ago to an all-time high of 55.5 percent. Also reaching a record high was the percentage of new vehicles financed, which rose from 85% in the year-ago period to 85.8%.

Ad Loading...

The average credit score for a new-vehicle loan dropped two points from last year to reach 709, while the average credit score for a used loan increased one point to 645 over the same time period.

Also during the second quarter, the average interest rate for a new-vehicle loan was 4.8%, up from 4.6% in the year-ago period. The interest rate for used vehicle loans was 9.1 percent, up from 8.8 percent over the same time period.

More F&I

Industryby StaffMarch 6, 2026

Explore the 12 Rules for an F&I Life at EFI

EFI 2026 will take place April 13–15 at The Cosmopolitan Las Vegas.

Read More →
F&IMarch 4, 2026

Creating Your Own Economy

In this video, Reese Dailey explains how effective follow-up drives better results across the dealership, including increased sales, higher F&I penetration, and stronger customer retention.

Read More →
Industryby StaffMarch 2, 2026

Prove You Can Do F&I at EFI

‘So You Think You Can Do F&I’ is a live role-play contest taking place at the 2026 Ethical F&I Managers Conference.

Read More →
Ad Loading...
Two hands holding tiles that spell YES and No on a black background
F&Iby Hannah MitchellMarch 1, 2026

Expect Yes in the F&I Office

It may be human nature to back off when a customer seems to say no to a product or service. But experts say F&I managers should operate as though the answer will be the opposite.

Read More →
Industryby Lauren LawrenceFebruary 25, 2026

Report Finds Year-End F&I Strength

Deal volume ebbed and flowed throughout 2025, but product performance remained steady, according to automotive technology and data intelligence solutions provider StoneEagle.

Read More →
Industryby Hannah MitchellFebruary 23, 2026

Some Auto Brands Cheaper to Insure

A new top 10 list ranks the least expensive for average full insurance coverage on a clean driving record and high driver credit scores.

Read More →
Ad Loading...
F&IFebruary 13, 2026

Business Office Blueprint

Try following these 20 steps to greater success in the dealer F&I office this year.

Read More →
Industryby Lauren LawrenceFebruary 11, 2026

Insurance Shopping on the Rise

A TransUnion study found that relationship-driven sales models proved to be important, as consumers who used an agent had a lower shopping intensity than those going it alone.

Read More →
Industryby Hannah MitchellFebruary 4, 2026

Auto Insurance Cost Reprieve

2025 brought consumers relief after years of rate hikes, but 2026 could bring renewed policy pain, depending on how U.S. trade policy affects prices.

Read More →
Ad Loading...
Reese Dailey from Automotive Training Academy by Assurant
F&IFebruary 4, 2026

Cash Deal Strategies

In this video, Reese Dailey of the Automotive Training Academy by Assurant reveals strategies to make cash deals profitable without relying on monthly payment bumps.

Read More →