by Wolf Richter
Wolf Street
Delinquency rates unchanged, more buyers paid cash to dodge interest rates, prime is pristine, subprime (14% of originations) is (always) in trouble.
About 80% of new vehicles purchased in the US in 2024 were financed with loans or leases, down from 85% in Q1 2022, as higher interest rates have induced a larger share of buyers to pay cash. Due to their convenience, leases have remained popular with people who could easily pay cash.
In terms of used vehicles, about 37% of the purchases were financed, down from 42% in early 2022, as a larger share of buyers paid cash. This financing data is from Experian, based on the credit data it obtains and collects on all consumers.