Your #1 source for auto industry news and content

Experian’s finance report shows increasing consumer preference for EVs – Melinda Zabritski | Experian

Experian’s latest State of the Automotive Finance Market Report indicates that an increasing number of consumers are opting for EVs. To provide more insights on the findings, Melinda Zabritski, Experian’s head of automotive financial insights, joins us for the latest episode of CBT Now.

Key Takeaways 

1. There has been a noticeable increase in the adoption of electric vehicles (EVs). New financing for EVs now accounts for 9% of the market, up from 3-4% a few years ago, indicating a significant shift in consumer preferences towards electric vehicles.

2. Zabritski asserts that the automotive finance market has stabilized, particularly in the fourth quarter of last year. Moreover, loan amounts for new and used vehicles have remained steady, with new vehicle loans averaging around $40,000-$41,000 and used vehicle loans averaging around $26,000. This suggests a stable market without significant year-to-year increases.

3. Additionally, lenders’ market share has fluctuated due to banks leaving the market and tightening credit, which reduced their market share. However, credit unions have experienced growth in their market share, especially as they have been slower to raise interest rates compared to banks.

4. Consumers are increasingly opting for shorter-term loans due to higher interest rates and the desire to minimize overall interest payments. Additionally, many of the incentives available were for shorter terms, influencing loan duration choices.

5. The number of vehicles purchased with cash has increased, rising to about 20% of new vehicle sales from the usual 15%. At the same time, delinquency rates have increased, returning to pre-COVID levels, this is likely due to the end of government financial support and rising monthly payments.

To learn more about Experian’s State of the Automotive Finance Market Report, click here.

"EV adoption is growing, quickly approaching 9% in new financing, indicating a significant shift in consumer preferences." – Melinda Zabritski

Stay up to date on exclusive content from CBT News by following us on Facebook, Twitter, Instagram and LinkedIn.

Don’t miss out! Subscribe to our free newsletter to receive all the latest news, insight and trends impacting the automotive industry.

CBT News is part of the JBF Business Media family.

Jaelyn Campbell
Jaelyn Campbell
Jaelyn Campbell is a staff writer/reporter for CBT News. She is a recent honors cum laude graduate with a BFA in Mass Media from Valdosta State University. Jaelyn is an enthusiastic creator with more than four years of experience in corporate communications, editing, broadcasting, and writing. Her articles in The Spectator, her hometown newspaper, changed how people perceive virtual reality. She connects her readers to the facts while providing them a voice to understand the challenges of being an entrepreneur in the digital world.

Related Articles

Latest Articles

From our Publishing Partners