SCHAUMBURG, Ill. -

Reinforcing the appeal of used models highlighted in a recent Ally Financial survey, Experian’s latest data showed used vehicles are commanding a larger share of the U.S. automotive finance market.

According to Experian’s Q3 2019 State of the Automotive Finance Market report, analysts found used financing increased 2.4% year-over-year, reaching 55.15% in Q3, compared to 53.86% in Q3 of last year.

Similar to what Ally also noted, Experian explained the trend appears to be driven by a number of factors, including a higher percentage of prime customers financing used vehicles and an increased availability of late-model vehicles.

While used-vehicle financing saw growth in Q3, Experian indicated the most significant shift was in the super-prime segment, increasing 3.3% to reach 13.42% during the quarter.

As a whole, Experian tabulated that prime and super-prime consumers make up 51.24% of used-vehicle installment contracts — the highest percentage since Q3 2009.

Even when financing used vehicles, Experian pointed out that consumers continue to lean toward longer payment terms, with used terms clocking in at 64.89 months, and average new-vehicle financing terms reaching 69.28 months.

“Consumers appear to be realizing that financing a used vehicle can be an optimal choice — particularly as they look to improve their financial health. With so many late-model vehicles, used vehicles can offer similar features to new vehicles but at a lower cost,” said Melinda Zabritski, Experian’s senior director of automotive financial solutions.

“Understanding these trends can help lenders and dealers ensure they have the right options available for consumers,” Zabritski continued in a news release.

As prime consumers continue to shift to used, Experian noticed they’re also shifting where they shop for vehicles.

Analysts indicated independent dealers saw an increase in prime and super-prime financing, with both segments making up 37.92% of contracts in Q3, compared to 34.87 percent a year ago.

Furthermore, Experian said independent dealers also saw an increase in average used financing terms, rising from 60.86 months in Q3 of last year to 62.59 months in Q3 of this year.

Other highlights from Q3 information

In other parts of its latest update, Experian determined the average amounts financed continued to increase across the board.

The average amount financed for a new model jumped 3.8% to reach $32,480, while the average amount financed for a used vehicle increased by 2.3% to reach $20,466.

The average monthly payments continued to remain high in Q3, too. Experian pegged the average monthly payment for a new vehicle was $550, while the average monthly payment for a used vehicle reached $393.

What might be encouraging for finance companies, Experian also noticed average credit scores have also seen significant improvement over the past four years.

The average credit score for someone financing a new vehicle has increased 10 points since Q3 of 2015 to reach 725. Similarly, the average credit score for an individual financing a used vehicle has climbed 12 points during the same time period to reach 662.

“Credit scores are one of the critical factors that can determine loan terms and interest rates when shopping for a vehicle loan, so consumers should be sure their credit is in the best shape possible before they’re in the market,” Zabritski said.

“In addition to traditional methods to improve a credit score, like making payments on time, consumers should leverage new tools like Experian Boost to get their credit ready for a vehicle purchase,” she went on to say.

Six additional findings for Q3 included:

• Outstanding automotive balances totaled $1.22 trillion.

• 30-day delinquencies remained stable at 2.25 percent, decreasing for all providers but finance companies, which typically book the most subprime and deep subprime paper.

• Used leasing saw a slight increase from 3.88% in Q3 of last year to 4.07% in Q3 of this year.

• Average terms saw increases in both the 61-72 month segment (41% for new, 42.9% for used) and in the 73-84 month category (30.9% for new, 19% for used).

• Interest rates rose across all risk segments (5.96% for new vehicles and 9.57% for used).

• The average price difference in monthly payments between installment contracts and leases is $101.

Experian is hosting a webinar to elaborate more on its latest information. Individuals can register for the event on this website.