June 16, 2024
News

Banks reclaim top spot in used market with 28% of loans

In the first quarter of 2024, banks once again became the primary lender for used vehicles, reclaiming their position. Captives, on the other hand, saw their highest share of new-vehicle loans and leases since 2010 due to increased incentives. During this period, banks’ share of used-vehicle financing saw a slight increase of 79 basis points (bps) year over year, reaching 28.4%.

FAQ

Q: What is the difference between banks and captives in vehicle financing?

A: Banks are traditional financial institutions that offer a wide range of financial services, including vehicle loans, to the general public. Captives, on the other hand, are financial subsidiaries of vehicle manufacturers that specifically finance their brand’s vehicles.

Conclusion

Overall, the first quarter of 2024 saw banks leading the way in used-vehicle financing, while captives capitalized on incentives to secure a larger share of new-vehicle loans and leases. This highlights the dynamic nature of the vehicle financing market and the importance of adapting to changing conditions.

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