June 16, 2024
News

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

In the first quarter of 2024, banks once again emerged as the primary lender for used vehicles, reclaiming their position from other types of lenders. Captives, on the other hand, saw their highest share of new-vehicle loans and leases since 2010, attributed to elevated incentives in the market. Banks’ share of used-vehicle financing increased by 79 basis points (bps) compared to the previous year, reaching 28.4% in the first quarter.

FAQ

1. How do banks compare to captives in terms of vehicle financing?

2. What factors contributed to captives holding their highest share of new-vehicle loans and leases?

3. What implications could the increased share of used-vehicle financing by banks have on the market?

Conclusion

Overall, the first quarter of 2024 showed banks reestablishing their dominance in used-vehicle financing, while captives made significant gains in new-vehicle loans and leases. This shift in market dynamics could have implications for both lenders and consumers in the auto financing industry.

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