Used vehicles remained the majority of vehicles financed in the first quarter of 2025 but the percentage dropped from the previous year.
According to Experian’s Auto Finance Market Report, 56.7 percent of vehicles financed in the first quarter were used, with an average age of 3.83 years. That percentage dropped from 59.1 percent in 2024. Of the used vehicles sold in the first quarter, 37.07 percent were financed.
The average credit score for used vehicle consumers remained at 684.
Banks provided the largest share of used vehicle financing at 28.37 percent, rising past credit unions (28.24 percent) for the first time since 2022. BHPH dealerships financed 15.46 percent of used vehicle financed transactions.
The percentage of subprime borrowers grew slightly from 20.59 percent to 20.69 percent.
The average amount financed increased from $26,054 to $26,144. The monthly payment decreased from $524 to match 2023 at $521 due to a decrease in interest rates from 12.36 percent in 2024 to 11.87 percent. The loan term increased from 67.2 months to 67.22.
The 60-day delinquencies were at 1.48 percent for used vehicle collections.
