Loading...

Insight into the Market Leads the Way to Pandemic Recovery

Published: September 17, 2020 by Guest Contributor

two blue cars parked in tandem in an automotive showroom

No one was quite prepared for COVID-19 and its unprecedented impact on the automotive industry. Factories shutdown, dealerships closed and sales plummeted. But, now as the market begins to recover, the environment looks different than it did before. In order to move forward and rebound from the pandemic, manufacturers and dealers need to rely on market trends and insights to assess their go-forward strategy.

As expected, new and used vehicle registrations experienced significant declines compared to last year. According to Experian’s Q2 2020 Market Trends Review, there were 6.4 million new vehicle registrations through the first half of the year, down from 8.4 million a year ago; used vehicle registrations came in at 18.3 million, down from 21.8 million over the same period.

Despite the significant drop in new and used vehicle registrations at the onset of the pandemic, a positive trend is emerging. In March, when COVID-19 was officially declared a pandemic, the volume of new vehicle registrations dropped by approximately 460,000 compared to February; a similar trend was observed on the used vehicle side, where registrations declined by as much as 1.6 million. We have since seen new and used vehicle registrations slowly approach pre-pandemic levels; and in some instances, exceed them. In both June and July, there were approximately 1.2 million new vehicle registrations; only about 120,000 off February levels—and used vehicle registrations actually surpassed the February mark, in both June and July by surpassing 3.7 million vehicles each month.  This positive trend eludes to a cautious return to normalcy as stay-at-home orders lift and consumers once again consider purchasing vehicles.

But with more consumers re-entering the automotive market, understanding which vehicles are most in demand is crucial to meeting the needs of car buyers. The top three makes for new vehicle registrations for consumers were GM (13.9%), Toyota (12.4%) and Ford (10.1%). Meanwhile, the top three make and models include Ford F-150 (3.4%), Chevy Silverado 1500 (3.3%) and Toyota RAV4(3.1%).

Beyond the preferred makes and models, the industry needs to understand who is buying cars. And contrary to popular belief, Millennials and Gen Z have actually increased their car purchasing. Both groups saw an increase in the percentage of consumers purchasing vehicles, while Baby Boomers and Gen X saw a decrease. It’s important to note, Baby Boomers, Millennials and Gen Xers still make up the majority of consumers purchasing new vehicles.

People are at different points in the COVID-19 recovery lifecycle. Understanding who is in the market for a vehicle and what they are looking for is more important than ever. As the market rebounds, manufacturers and dealers can both meet the demands of consumers and increase sales by identifying in-market car shoppers and reaching them with relevant messages. For example, Millennials might be more receptive to digital messaging across many platforms while Baby Boomers and Gen X consumers may gravitate towards print. It’s these small details that will carry messaging further.

As consumers begin to reconsider automotive purchases, manufacturers and dealers can stay one step ahead by digging into the data. Staying ahead of the trends and adjusting to what lies ahead, will not only support sales growth, but also support consumers as they begin to recover from the impact of COVID-19.

To view Experian’s full Q2 2020 Market Trends Review, click here

Related Posts

While many industry pundits are assessing how macroeconomic changes may impact the future of the automotive market, recent data suggests consumers tend to stick to specific fuel types. According to Experian’s Automotive Market Trends Report: Q4 2024, over the last 12 months, 77.5% of electric vehicle (EV) owners replaced their EV with another one, with 15.6% returning to gas-powered vehicles. Meanwhile, 82.2% of gas vehicle owners replaced it with the same fuel type, while only 4.7% made the switch to electric. It’s important for professionals to recognize that most consumers tend to replace their vehicles with the same fuel type. Additionally, knowing who is making these purchases and the types of vehicles being registered allows better anticipation for consumer needs and ultimately enhances the buying experience while fostering consumer loyalty. Breaking down fuel types by generation Through Q4 2024, Baby Boomers predominantly registered new gasoline vehicles, accounting for 74.7% of their choices, while 15.9% opted for hybrids and 6.6% chose EVs. Millennials showed a similar trend, with 69.2% registering gas vehicles, followed by 15.1% selecting hybrids and 12.5% choosing EVs. Gen Z also favored gasoline vehicles at 74.0%, with hybrids making up 14.3% and EVs at 9.1% of their registrations. Although gasoline vehicles account for the majority of new registrations, EVs and hybrids are steadily gaining ground, particularly among the younger generations who are drawn to advanced features that align with their preferences. This will likely play a role in shaping the future of vehicle registrations as more gas alternative models hit the market and consumers make the switch. To learn more about vehicle market trends, view the full Automotive Market Trends Report: Q4 2024 presentation on demand.

Published: April 2, 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

Summary:  Gen Z, Millennials, Gen X, and Boomers each have unique automotive buying preferences and your strategies to reach each generation should reflect these preferences. The automotive landscape is shaped by the distinct preferences of different generations. From Gen Z to Boomers, each generation brings unique buying habits that automotive marketers must understand to stay competitive. Below is a brief overview of the key insights from the latest reports on Gen Z, Millennials, Gen X, and Boomers. To learn more about how to market to each generation, download the respective playbook. Gen Z (Born 1996–2015) Gen Z buyers are digital natives who prefer compact vehicles. The Honda Civic leads in market share for this group, showcasing their preference for smaller, fuel-efficient cars. They rely heavily on digital platforms for their research, with 73% of impressions delivered through Connected TV (CTV). Millennials (Born 1981–1995) Millennials value technology and eco-friendly options. Crossovers (CUVs) are their top choice, making up 50.2% of new vehicle registrations. Electric and hybrid vehicles are also popular, reflecting their environmental consciousness. Popular models include the Honda Civic and Toyota RAV4. Gen X (Born 1965–1980) Gen X buyers favor practicality and reliability, gravitating toward SUVs and trucks. The Ford F-150 is the top model among this group, and they are more likely to invest in luxury or exotic vehicles than younger generations. Boomers (Born 1946–1964) Boomers remain loyal to traditional brands, with a strong preference for non-luxury and luxury cars, such as the Honda CR-V and Ford F-150. They also favor gas-powered vehicles over electric, though hybrid options are gaining ground. Summary Understanding generational differences is crucial to developing effective marketing strategies that resonate with each group’s unique preferences. For a more detailed generational analysis, download the full report. Experian Automotive is here to help you with your marketing needs. If you’d like to learn more about our solutions and how we can support you, contact us below.

Published: November 4, 2024 by Kirsten Von Busch

Subscribe to our Auto blog

Enter your name and email for the latest updates.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.