Auto Loans by Source

New vs. Used Car Auto Loans in Q2 2023

Navigating through the bustling lanes of car financing can often resemble a complex maze for buyers. Unveiling the curtain, let’s embark on a journey to dissect the intriguing patterns enveloping the new and used car auto loan realm in Q2 2023.

Snapshot of the Financing Landscape:

New Car Auto Loans:
  • OEM Captive Finance: Steals the show with a massive 58.47% penetration.
  • Banks and Credit Unions: Follow suit with 22.25% and 13.7% respectively.
Used Car Auto Loans:
  • Credit Unions: Lead the way, seizing 28.65% of the market.
  • Banks: Trail slightly behind at 26.65%, with BHPH/Others also marking significant presence at 17.1%.

The OEM Captive Finance Juggernaut in New Cars

Why has OEM Captive Finance cast such a robust shadow in the new car financing space? Perhaps the lure of low-interest rates, tantalizing 0% financing car deals, and a smorgasbord of special programs offered directly by manufacturers entice buyers into embracing OEM auto loan options. Loyalty programs and the comfort of bundled buying and financing could be vital cogs in driving this phenomenon.

Navigating the Used Car Financing Terrain with Credit Unions

Shifting gears towards used auto loans, credit unions have firmly etched their prominence. A possible hypothesis simmers around the aspects of competitive rates and a penchant for personalized service. Furthermore, the leniency and accessible credit options furnished by credit unions could be acting as a magnet for those who may find traditional bank or OEM financing slightly out of reach.

BHPH’s Noteworthy Presence in Used Car Financing

Delving deeper, the significant footprint of BHPH (Buy Here, Pay Here) and other non-traditional financiers in used car finance sparks curiosity. Is it the allure of simplified, less-stringent financing options, especially for individuals navigating through credit challenges? A hypothesis sways towards the direction of ease, accessibility, and perhaps, an appealing proposition for those dwelling in lower-income brackets or car buyers with bad credit.

Pondering Over Influential Variables

While these trends unfold, underlying variables subtly orchestrate the narrative:

  • Economic Conditions: How are macro-economic dynamics shaping buyer choices?
  • Consumer Confidence: To what extent does trust in financial institutions mold financing decisions?
  • Market Dynamics: Is the digital upheaval of financial services or the skyrocketing trend of electric vehicles silently steering these patterns?

Wrapping It Up:

As we steer through the vibrant data of Q2 2023, the road ahead is paved with queries and hypotheses, beckoning further investigation and data-driven exploration. Are the hypotheses grounded in the current economic climate, or is there a subtext we’re yet to uncover?

Car buyers, financiers, and enthusiasts, strap in, as the journey through the riveting world of car financing trends promises a ride filled with insights, revelations, and perhaps, a few surprises around the bend. offers accurate estimates of new and used car loan payments based on self-selected credit score, current rebates, down payment, and trade equity or negative equity, without customers having to provide their personal identifying information such as email and phone.

Data Source: Experian© State of the Automotive Finance Market Q2 2023

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