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Use Data to Inform Strategy for the Recovery and Beyond

Published: January 26, 2021 by Guest Contributor

Experian automotive market insights text with dashboard example

It goes without saying that the automotive industry has been through a lot this past year. Initially hit hard during the early days of COVID-19, it has been resilient and shows signs of rebounding. But despite the recovery, it’s hard to overlook the fact that the automotive industry and the rest of the economy have encountered two large-scale downturns within the last 12 years. And while the underlying factors behind the Great Recession and COVID-19 are considerably different, auto dealers are likely left wondering how to continue to stimulate the recovery, but more importantly, protect and prepare themselves from future downturns.

In short, the answer is data.

If we’ve learned anything from the unprecedented events of this year, it’s that trends can shift and change rapidly. We’ve observed correlations between certain economic indicators and the potential impact to the industry. Now, more than ever, dealers should be leaning into data to stay close to trends in real-time, adjusting strategy accordingly.

It might feel overwhelming to stay on top of it all, but dealers don’t have to face it alone. To help dealers maximize data, we launched Experian Automotive Market Insights. The dashboard provides a variety of insights, including auction volume by region, vehicles coming off-lease, off-loan or have positive equity, correlations between economic events and finance trends. In addition, dealers can use a range of economic indicators to scenario plan and gauge how far in advance these trends may impact the automotive industry.

This level of information can help auto dealers tackle their biggest challenges and create a more comprehensive strategy for their businesses. They can use the insights in a variety of ways, such as how to restock amid inventory shortages or uncover conquest opportunities to drive sales growth. For example, since the beginning of September, the highest volumes of vehicles at auction are in the central, east, southeast and southwest regions—all above 137,500 units.

Of course, as this year has proven, it’s not enough to just tackle the immediate challenges. Dealers will also need to address and prepare for larger economic issues before they occur. For instance, understanding how unemployment may potentially alter vehicle registrations. Based on Experian data, the lag time between the peak of unemployment and decline in vehicle registrations was approximately one month. This level of insight provides dealers with an opportunity to adjust their strategies and budgets ahead of economic crises.

We can’t predict the future, but we can use history to inform our decisions moving forward. While every economic downturn is different, understanding how certain events impact the automotive market is important for dealers to prepare their strategies. Leveraging data is crucial for staying on top of trends, and pivoting business decisions in challenging times.

Visit Experian Automotive Market Insights for more information.

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Published: March 1, 2025 by Jon Mostajo, test user

Electric vehicles (EVs) are the topic of conversation in the automotive industry, but we’re continuing to see another fuel type pick up speed. With consumer demand shifting and drivers exploring more fuel-efficient options, the automotive market is leaning back into hybrids. In fact, new retail hybrid registrations grew to 11.5% through Q3 2024, from 9.5% through Q3 2023, according to Experian’s Automotive Market Trends Report: Q3 2024. Meanwhile, EVs increased from 7.7% to 8.2% year-over-year and gasoline vehicles declined to 70.4% this year, from 72.7% last year. Despite EVs gaining notable attention over recent years, some consumers may be factoring in the benefits of opting for a hybrid, such as the convenience of driving a longer distance without facing challenges as charging stations remain limited. As more manufacturers adapt to consumer needs and roll out additional vehicles, data shows 9.1% of 2024 model year vehicles in operation were attributed to hybrids, while 6.2% of 2024 model years were EVs through Q3 2024. Having more models enter the market has shifted the hybrid and plug-in hybrid electric vehicle (PHEV) market share, with the Toyota Camry making up 12.5% of the market share this quarter, a notable increase from 2.4% last year. On the other hand, the Jeep Wrangler 4xe went from having 4.5% of market share last year to 2.4% through Q3 2024. With many consumers continuing to have some concerns around EVs such as range anxiety and charging times, they’re seeking a more practical solution for their daily driving needs. The balance of fuel options provides more convenience—making hybrids an appealing choice for those wanting an EV alternative. It’s important for manufacturers to stay ahead of the competitive market as it’s constantly evolving. Leveraging the most current data can provide solutions that address both feasibility and consumer preference. To learn more about vehicle market trends, view the full Automotive Market Trends Report: Q3 2024 presentation on demand.

Published: January 10, 2025 by John Howard

Electric vehicle (EV) registrations are re-gaining momentum as a wave of more affordable models hit the market, pushing more consumers than ever to make the transition. According to Experian’s State of the Automotive Finance Market Report: Q3 2024, EVs made up 10.1% of new vehicle financing this quarter, increasing more than 30% from last year. Furthermore, 45% of EV consumers leased their vehicle in Q3 2024—resulting in EVs accounting for 17.3% of all new vehicle leasing. Of the top five transacted EV models this quarter, Tesla accounted for three—with the Tesla Model Y leading at 31.8%, followed by the Tesla Model 3 (14.3%) and Tesla Cybertruck (4.9%). Rounding out the top five were the Ford Mustang Mach-E (3.9%) and Hyundai IONIQ 5 (3.7%). Interestingly, data in the third quarter of 2024 found that consumers’ financing decisions vary based on the EV model they’re looking at. For example, 76.5% of consumers purchased the Tesla Model Y with a loan and 13.1% opted for a lease; on the other hand, only 8.5% of consumers bought the Hyundai IONIQ 5 with a loan and 78.7% chose to lease. Despite the rising interest in leasing as more incentives and rebate programs roll out, some consumers still prefer to purchase their EV with a loan. Understanding financing patterns based on different models is key for professionals as they cater to the diverse preferences and determine the long-term viability of certain EVs and their potential for leasing renewals. Snapshot of the overall vehicle finance market As the finance market continues to stabilize, it’s notable that the average interest rate for a new vehicle fell year-over-year, going from 7.1% to 6.6%, respectively. However, average new vehicle loan amounts increased $736 from last year, reaching $41,068 in Q3 2024, and average monthly payments went from $732 to $737 in the same time frame. On the used side, average interest rates saw a slight uptick to 11.7% in Q3 2024, from 11.6% last year. Meanwhile, the average loan amount dropped from $1,195 over the last year to $26,091 this quarter and the average monthly payment declined from $538 to $520 year-over-year. With the overall market shifting and EVs re-sparking interest, automotive professionals should leverage how consumers are purchasing their vehicles based on average payments and the fuel type as more incentives are being offered. Monitoring these insights can unlock opportunities for tailored financing solutions that meet the needs of consumers as preferences continue to evolve. To learn more about automotive finance trends, view the full State of the Automotive Finance Market: Q3 2024 presentation on demand.

Published: December 5, 2024 by Melinda Zabritski

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