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Credit Unions See The Highest Market Share In Five Years

Published: June 21, 2022 by Melinda Zabritski

Young couple discuss the purchase of a new car with salesman

As the automotive industry continues to navigate through inventory shortages and high consumer demand, we’ve seen captives pull back on offering new vehicle incentives compared to the early stages of the pandemic. This has opened the door for credit unions to regain market share, considering they often offer the lowest interest rates.

According to Experian’s State of the Automotive Finance Market Report: Q1 2022, credit unions had their highest total share in five years—increasing to 22.06% from 18.55% in Q1 2021. This is good news considering credit unions’ market share has seen a continuous decline over the last few years, going from 21.15% in Q1 2018 to 20.21% in Q1 2019 and 19.28% in Q1 2020.

As the ongoing inventory shortages lead to reduced availability for new vehicles, increased demands for used vehicles have become more prominent. And with credit unions typically focusing on the used vehicle market, seeing a significant increase in their market share is not out of the ordinary.

New and used vehicle finance trends

Breaking down vehicle financing market shares further, credit unions’ new vehicle financing market share increased from 10.77% to 15.79% in Q1 2022 and their used financing market share went from 24.45% to 26.48% year-over-year.

While credit unions experienced the most significant growth in Q1 2022, it’s important to look at the trends at a broader level. This quarter, used vehicle financing saw a slight increase—making up 58.98% of all vehicle financing, compared to 57.37% the previous year. Though, new vehicle financing declined in Q1 2022, making up the other 41.02%, from 42.63% over the same period.

As we continue to see how inventory shortages affect the availability for new vehicles, it is notable that the value of used vehicles has been on the rise due to high consumer demand. In Q1 2022, the average monthly payment for used vehicles increased to $503, from $414 the previous year. While the average monthly payment for new vehicles jumped from $577 to $648 year-over-year.

The price increases will reflect in financing attributes as consumers are searching for the most budget-friendly options.

By staying close to the data, it will enable lenders and dealers to make informed decisions when helping consumers find the right vehicle for their needs in the quarters to come.

To learn more about credit unions market share and other automotive finance trends, watch the entire State of the Automotive Finance Market: Q1 2022 presentation on demand.

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Amid interest rates leveling out and some lenders reassessing go-to-market strategies, the automotive finance landscape is experiencing notable shifts in market share. According to Experian’s State of the Automotive Finance Market Report: Q1 2025, banks recouped some of their total finance market share for the first time in several years, reaching 26.6% during the quarter, up from 24.8% a year ago. On the other hand, captives’ total market share declined from 31.3% to 29.8% year-over-year and credit unions experienced a modest increase from 20.2% to 20.6%. Despite the overall market share shifts, captives continue to lead in new vehicle financing at 57.1% in Q1 2025, although down from 62.1% the year prior. Meanwhile, banks increased to 24.1% this quarter, from 20.4% in Q1 2024 and credit unions went from 9.6% to 10.9% during the same period. On the used side, banks and credit unions were grouped much closer together. Banks led the way with 28.4% of the used finance market in Q1 2025, up from 27.9% last year, while credit unions went from 27.7% to 28.2% year-over-year and captives declined from 8.5% to 7.4%. As market share movement continues to be a valuable indicator of shifting strategies and consumer behavior, it’s important for automotive professionals to keep a close eye on these shifts to uncover new opportunities while looking for ways to stay ahead of the rapidly evolving industry. Breaking down the latest finance trends Data in the first quarter of 2025 shows the automotive finance market continues to stabilize as automotive professionals gain clearer visibility into lender behavior and consumer demand. For example, the average loan amount for a new vehicle increased $1,110 year-over-year to $41,720 in Q1 2025. However, the average interest rate dropped from 6.9% to 6.7%, and the average monthly payment went from $737 last year to $745 this quarter. For used vehicles, the average loan amount saw a slight uptick of $90 year-over-year, reaching $26,144 this quarter. Meanwhile, the average interest rate declined from 12.4% last year to 11.9% this quarter and the average monthly payment trended lower at $521, from $524 in Q1 2024. Monitoring and leveraging market share shifts and financing trends can support strategic planning while empowering automotive professionals to anticipate consumer purchasing patterns and tailor conversations more effectively to meet buyers where they are during their car buying journey. To learn more about automotive finance trends, view the full State of the Automotive Finance Market: Q1 2025 presentation on demand.

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Quick Summary: Leasing continues to increase in the electric vehicle (EV) market. EVs accounted for nearly 20% of all new vehicle leases in Q4 2024, up from only 2.11% of new vehicle leases four years ago in Q4 2020. With consumers looking for flexibility—both in monthly payment and model availability—we’re seeing leasing continue to surge in the electric vehicle (EV) market. According to Experian’s State of the Automotive Finance Market Report: Q4 2024, EVs accounted for 19.5% of all new vehicle leases this quarter, up from 11.7% last year and a substantial increase from 2.1% in Q4 2020. Diving a bit deeper, data found EVs accounted for 9.3% of all new purchases in Q4 2024. Of those EVs, 50.1% were leased, while 38.9% were financed through loans. With lease payments for EVs ultimately being more affordable compared to loans and the excitement of driving the latest models packed with advanced technology, it’s no surprise we’re seeing leasing grow in popularity. Top leased EVs: How do lease and loan payments compare? As more consumers transition to EVs and manufacturers introduce new options to their lineup, certain models have become top choices for those opting to lease. Tesla accounted for the top two leased EVs in Q4 2024, with Tesla Model 3 coming in at 12.2% and Tesla Model Y at 9.1%. However, the Honda Prologue followed closely at 8.8% this quarter. Rounding out the top five were Hyundai IONIQ 5 (6.9%) and Chevrolet Equinox EV (5.9%). It’s notable that leasing has traditionally been a value-driven option for consumers, and the same holds true in the EV market. Leasing continues to offer lower monthly payments, making the finance option stand out for those looking to test an EV before purchasing or simply wanting the latest model on the lot. In Q4 2024, the average payment difference between a loan and a lease was $175. Though, the average monthly payment to lease a non-luxury EV was $504 this quarter, noting a $205 difference compared to the $709 loan payment. By comparison, the average monthly payment between a loan and leased luxury EV was $98—coming in at $842 for a lease and $940 for a loan. As more consumers choose to lease EVs, automotive professionals in both new and used markets have a chance to capitalize on this trend. By leveraging this data, those in the new retail market can effectively reach the right audience, while those in the used market can stay ahead of the curve and prepare for the influx of off-lease models in the coming years. To learn more about automotive finance trends, view the full State of the Automotive Finance Market: Q4 2024 presentation on demand.

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