Experian: Facing Higher Loan Amounts, Prime Buyers Go Used
More consumers in the prime and superprime credit tiers opted for used vehicles as concerns around affordability grew in the first quarter, according to the latest report from Experian.

More car buyers armed with high credit scores are defecting from the showroom to the used-car lot as the new-vehicle affordability gap grows, according to the latest figures from Experian.
Photo courtesy Experian
SCHAUMBURG, Ill. — More and more prime and superprime car shoppers in the market for their next vehicle are electing to buy used, according to new research from Experian. Findings from the Q1 2019 State of the Automotive Finance Market report show the percentage of prime (61.9%) and superprime (44.8%) consumers choosing used vehicles reached an all-time high.
This trend comes as questions around vehicle affordability continue to dominate industry conversations. The average loan amount for a new vehicle surpassed $32,000 in Q1 2019, while the average loan amount for a used vehicle was slightly above $20,000. Additionally, the average monthly payment was $554 for a new vehicle and $391 for used.
“While vehicle affordability continues to be top of mind for the industry, consumers are actively seeking ways to ensure they can afford the vehicle they purchase — a positive sign for all parties involved,” said Melinda Zabritski, Experian’s senior director of automotive financial solutions. “It’s important that lenders and dealers continue to monitor these trends so they can work with car shoppers to help them find the right vehicle with the right financing options.”
The other side of the affordability conversation has focused on delinquency trends. In Q1 2019, 30-day delinquencies saw an increase to 1.98%, up from 1.9% a year ago. That said, banks, credit unions and finance companies all saw slight decreases in 30-day delinquency rates, and 60-day delinquencies remained relatively stable at 0.68% year-over-year. It’s important to keep in mind that the 30-day delinquency rate is still below the highwater mark of 2.81% set in Q1 2009.
“The delinquency rate is certainly a trend worth keeping an eye on, but it’s important to consider it within the larger historical context,” Zabritski said. “Other factors, like subprime originations remaining at historic lows, help paint the full picture of the industry.”
Originally posted on F&I and Showroom
More Industry

Kia Closes Out Summer With a Bang
Its U.S. subsidiary broke multiple records in August, in part due to a surge of demand for hybrids models.
Read More →
Indiana Dealership Changes Hands
A 30-year-old Ford dealership in Indiana has a new owner and will soon be undergoing renovations to meet manufacturer requirements.
Read More →
Texas Dealership No Longer in the Family
The Ford store, a longtime cornerstone of the Houston market, is now part of one of the fastest-growing U.S. auto groups.
Read More →
Genesis Grows California Presence
The Cardinale Automotive Group opened its third Genesis rooftop in the Golden State, Genesis of San Bruno, a stand-alone dealership serving the San Francisco Bay Area.
Read More →
August Auto Sales a Mixed Bag
An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.
Read More →
EV Market Humming Along
July sales show steady growth as the segment stabilizes from last year’s artificial surge following pullback of federal support.
Read More →
Auto Loan Delinquency Rates Stabilize
Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.
Read More →
EV Sales Recover in Q2
The EV sales roller coaster continues as numbers show improvement, but industry experts predict a year-over-year third-quarter decline and fourth-quarter jump.
Read More →
The Cheapest Hybrids to Fuel
The powertrain is increasing in popularity, in no small part due to its fuel economy. A new report lists the most efficient hybrids on the market.
Read More →
Hybrids and SUVs Gaining Ground
The most recent Kelley Blue Book Brand Watch found that only two nonluxury brands increased in shopper consideration, buoyed by their hybrid and SUV offerings.
Read More →