Used car financing gained in its market share in the third quarter of 2022, growing to 61.68 percent.
The figure was up from 59.66 percent for the same quarter of 2021, according to Experian’s State of the Automotive Finance Market report Thursday.
Opportunity open for independent dealers
The report showed a slight decrease in the sales for independent dealers to 47.46 percent from 47.67 percent in 2021.
“It shouldn’t come as a surprise to see that the independent dealer volume dipped slightly in the latest data,” said NIADA Vice President Jeremy Beck. “Our dealers have been fighting diligently in the lanes, online and in marketing to get inventory against deeper pockets of the franchise dealers. What’s encouraging is that overall used loans continue to increase as percentage of market share.
“As inventory levels come back online and interest rates continue to rise, it’s a great time to be an independent dealer. Consumers will be driven to our dealer lots by quality vehicles, a robust Certified Pre-Owned program that provides value and confidence to the consumer, and payments they can afford.”
“As inventory levels come back online and interest rates continue to rise, it’s a great time to be an independent dealer. Consumers will be driven to our dealer lots by quality vehicles, a robust Certified Pre-Owned program that provides value and confidence to the consumer, and payments they can afford.”
Jeremy Beck, NIADA Vice President
Rates, prices continue to rise in third quarter
For independent dealers, 37.97 percent of loans were by BHPH dealers, with 24.76 percent of financing being provided by finance companies, 21.53 percent by credit unions and 15.43 percent from banks.
The used car loan amounts continued to grow, jumping 9.34 percent from last year to $28,506. For the third quarter of 2021, the average finance amount was $26,251 and $21,629 for the same time period in 2020.
The average monthly payment topped $525 — an increase of $53 from 2021. The average loan rate was 9.34 percent, up from 8.12 percent in the third quarter of 2021. The average loan term also grew from 66.97 months to 68.08.
The numbers were down from the first and second quarters of 2022. The average loan amount decreased by $104 or 0.37 percent from last quarter.
