With new-vehicle inventory rebounding and some manufacturers continuing to offer incentives, consumers are shifting back into the new vehicle market—resulting in a notable impact on lender market share. According to Experian’s State of the Automotive Finance Market Report: Q1 2024, captives’ market share for new vehicle financing jumped to 61.75%, its highest level since 2010. Meanwhile, banks declined from 23.36% to 20.65% year-over-year and credit unions went from 17.02% to 9.69% over the same period.

“The return of new-vehicle inventory has had a ripple effect across the automotive finance market,” said Melinda Zabritski, Experian’s head of automotive financial insights. “Not only are we seeing in-market shoppers transition away from the used vehicle market but we’re starting to see the resurgence of leasing.”

Largely driven by the availability of new-vehicle inventory in Q1 2024, new vehicle leasing experienced a significant increase, reaching 24.12%, up from 19.33% in Q1 2023. In addition, the average monthly payment for a new lease dropped $7 compared to the previous year, reaching $595 in Q1 2024.

Notably, SUVs comprised the majority of the top leased vehicles in Q1 2024, with the Honda CR-V at 3.12% and Tesla Model Y at 2.69%. Rounding out the top five were the Nissan Rogue (2.35%), Chevrolet Equinox (2.21%), and Honda Civic (2.02%).

The average loan amount for a new vehicle was $40,634 in Q1 2024, down $481 from the previous year. Meanwhile, the average loan amount for a used vehicle decreased $498 over the same period, to reach $26,073. Despite the average loan amount for new and used vehicles declining, elevated interest rates caused slight increases to average monthly payments.

The average interest rate for a new vehicle was 6.73% in Q1 2024, up from 6.61% the previous year, while the average interest rate for a used vehicle was 11.91%, up from 11.40% over the new-vehicle inventory bounces back, reshaping the automotive finance market in Q1 2024 same period. As a result, the average monthly payment for a new vehicle increased $3, reaching $735, and the average monthly payment for a used vehicle was up $2 at $523. Interestingly, data showed that 16.31% of all new vehicle loan payments were over $1,000 in Q1 2024. Meanwhile, 33.6% of all used loans were under $400 this quarter.