New insights from Experian's Q2 2025 State of the Automotive Finance Market report shed light on a notable shift in how consumers acquire pre-owned vehicles. Contrary to common assumptions that vehicle financing is a universal practice, especially given its prevalence in new car sales, the data reveals a different story for the used car market. A significant majority of used cars are now being bought with cash, a trend heavily influenced by the current economic climate characterized by high interest rates. This divergence in purchasing methods between new and used vehicles underscores the importance of understanding evolving consumer financial strategies in the automotive sector.
The report's findings challenge the perception that financing is the go-to method for all vehicle acquisitions. While over 80% of new vehicles sold in Q2 2025 involved some form of financing, this figure drastically drops to just 37% for used vehicles. This considerable gap suggests that for a large segment of the population, financing a pre-owned car is not the standard. This phenomenon is further amplified by the fact that despite a lower percentage of individual used vehicle financing, the used car market still contributes a larger share to the total volume of vehicle financing, accounting for 57%. This is primarily due to the sheer volume of used car sales, which historically outnumber new car sales by a significant margin, such as the 40.8 million used vehicles sold compared to 17 million new ones in 2019.
The Dominance of Cash in Used Vehicle Transactions
For many, the act of financing a vehicle is seen as an almost automatic step in the purchasing process, particularly when considering new models. However, the latest data from Experian’s Q2 2025 State of the Automotive Finance Market presents a compelling counter-narrative for the pre-owned segment. While the vast majority of new vehicle transactions, specifically 80.27%, were facilitated through financing during this period, the landscape for used vehicles paints a starkly different picture. Only 37% of used cars, trucks, and SUVs were financed, indicating that for a substantial portion of buyers, a cash purchase has become the preferred and often only method of acquisition. This trend points to a re-evaluation of financial strategies by consumers, who are increasingly opting to avoid the complexities and costs associated with loans when purchasing second-hand vehicles.
This preference for cash is further underscored by how consumers navigate the used car market. The data illustrates a bifurcated approach based on the type of dealership. Approximately 54% of buyers chose franchised dealerships, where financing through traditional banks or credit unions was the dominant method. Conversely, 46% patronized independent lots, often characterized by “Buy Here, Pay Here” models or financing through specialized finance companies. At these independent establishments, less than 15% of buyers secured loans from banks, highlighting a diverse array of financing avenues available, yet a clear inclination towards cash transactions overall. This shift is a direct response to prevailing economic conditions, where the rising cost of borrowing makes immediate, cash-based purchases more financially prudent.
Understanding the Shift Towards Cash Purchases
The increasing popularity of cash payments for used vehicles is not an arbitrary development but a logical response to observable market dynamics, particularly the trajectory of interest rates. Since 2023, there has been a steady decline in the number of consumers choosing to finance pre-owned vehicles. This downward trend directly correlates with the continuous rise in borrowing costs, making vehicle loans significantly more expensive. As interest rates escalate, the long-term financial burden of financing a used car becomes less attractive, prompting buyers to seek alternatives. Opting for a cash purchase allows consumers to circumvent these elevated interest charges, thereby realizing substantial savings over the lifespan of the vehicle and its potential loan repayment period.
Further analysis of Experian’s data reinforces this perspective. Despite the decrease in financed used vehicle purchases, the average loan amount and interest rate for these transactions have remained relatively stable year-over-year. In Q2 2025, the average used car loan stood at $26,795 with an interest rate of 11.54%. This contrasts sharply with the new vehicle market, where the average loan amount was considerably higher at $41,983, albeit with a lower average interest rate of 6.80%. This disparity highlights the comparative costliness of financing used vehicles under current rate conditions. Ultimately, the market intelligence points to a clear conclusion: in the current economic environment, cash reigns supreme for used car acquisitions. Unless there is a significant downward adjustment in interest rates, this trend of lower financing uptake in the used car sector is expected to persist, solidifying the role of cash as the preferred payment method for value-conscious buyers.
The 2025 Chevrolet Equinox EV has made a significant impact on the electric vehicle landscape, boasting impressive sales figures since its debut. This electric SUV is rapidly gaining traction, outselling many competitors and closing in on market leaders like the Tesla Model 3 and Model Y. Its success is attributed to a combination of enhanced range—up to 319 miles for front-wheel-drive models and 285 miles for all-wheel-drive—and improved power output, with horsepower increasing for both FWD and AWD variants. Beyond its robust performance, the Equinox EV provides a smooth and comfortable driving experience, complemented by responsive steering and versatile regenerative braking options, including a convenient one-pedal driving mode.
Adding to its appeal, the Equinox EV features standard DC fast-charging, allowing drivers to gain approximately 70 miles of range in just ten minutes, a significant convenience for those on the go. Its competitive stance against rivals such as the Hyundai IONIQ 5, Kia EV6, and Ford Mustang Mach-E is further strengthened by a new, highly competitive lease offer for September. Under this promotion, the 2025 Equinox EV LT1 FWD is available for $249 per month over 24 months, with an initial payment of $6,149 and no security deposit. This national lease offer from Chevrolet aims to make electric vehicle ownership more accessible to a wider audience, though additional costs like taxes, title, and dealer fees are not included upfront, and a disposition fee applies at the lease’s conclusion.
The Equinox EV LT1 FWD comes equipped with a comprehensive suite of features designed to enhance both comfort and safety. Standard amenities include 19-inch alloy wheels, power-adjustable exterior mirrors, LED lighting, and a six-speaker audio system. Advanced technology features such as remote start via smartphone, OnStar connectivity, an 11-inch driver information center, and a 17.7-inch color display with navigation and Google Built-In are also part of the package. Safety is paramount, with the vehicle offering blind-zone steering assist, lane keep assist, a vibrating safety alert seat, forward collision alert, and automatic braking features, ensuring a secure driving environment for all occupants.
The Equinox EV represents a notable advancement in the electric vehicle market, captivating consumers with its stylish design, substantial range, cutting-edge technology, and robust safety features. It presents an excellent opportunity for those contemplating a shift from traditional gasoline vehicles. The current affordable lease deal, particularly with monthly payments below $300, significantly enhances its attractiveness and broadens its reach. Prospective lessees should carefully review all terms, including signing costs and mileage limits, and confirm details with an authorized dealership to ensure full understanding of the agreement before committing.
The 2026 Hyundai IONIQ 9, a newly introduced three-row electric SUV, is making waves with an attractive lease deal available this September. This vehicle stands out as a luxurious and practical option for families, offering ample interior space, sophisticated design, and a substantial all-electric driving range. Its competitive pricing through the current lease promotion positions it as a compelling choice in the growing electric SUV market, particularly when compared to rivals. With its advanced features, spacious cabin, and efficient electric powertrain, the IONIQ 9 is designed to cater to modern family needs while alleviating range anxiety typically associated with EVs, solidifying its position as a strong contender in the electric vehicle segment.
Hyundai's latest electric SUV, the 2026 IONIQ 9, is distinctively designed, setting it apart from other electric and gasoline vehicles. Based on the Palisade and sharing heritage with the Kia EV9, this new model comfortably accommodates up to seven passengers within its genuinely opulent interior. The vehicle's aesthetics strike a balance between elegance and simplicity, with a premium feel throughout the cabin. A notable feature is its impressive 335-mile electric range for the rear-wheel-drive variant, providing extensive travel capabilities without frequent charging interruptions.
The exterior of the IONIQ 9 is marked by a striking LED light bar at the front and vertical LED taillights, complemented by prominent fender flares and seamlessly integrated flush door handles. Inside, the design is contemporary, airy, and uncluttered, featuring a large, unified infotainment and instrument display, alongside practical physical controls. In the competitive landscape of three-row electric SUVs, the IONIQ 9 vies with models such as the Kia EV9, Rivian R1S, Tesla Model X, Cadillac Vistiq, and Volvo EX90. The current September lease offer makes the IONIQ 9 an even more appealing prospect among these high-end options.
Hyundai is presenting an enticing lease agreement for the 2026 IONIQ 9 S RWD for the month of September. This deal entails a monthly payment of $419 over 36 months, with an initial payment of $4,999 at the time of lease signing. This upfront cost excludes various fees such as registration, taxes, title, licensing, processing, documentation, insurance, and any emission charges. No security deposit is mandated for this offer. Lessees are responsible for insurance, maintenance, and any necessary repairs during the lease term. A disposition fee of $400 is typically due at lease termination in most states, with exceptions in Colorado, Indiana, Iowa, Kansas, Maine, Oklahoma, South Carolina, Wisconsin, West Virginia, and Wyoming, where state laws may limit this fee. The lease allows for an annual mileage of 10,000 miles, totaling 30,000 miles over the 36-month period. This attractive lease promotion concludes on September 2, 2025.
The 2026 Hyundai IONIQ 9 S RWD is propelled by a 110.3 kWh lithium-ion battery, connected to a permanent magnet synchronous motor that delivers 215 horsepower and 258 lb-ft of torque to the rear wheels. This configuration yields an estimated range of 335 miles. Its efficiency ratings are 103 MPGe in the city, 81 MPGe on the highway, and a combined 92 MPGe. The IONIQ 9 supports DC fast charging, enabling a 10-80 percent charge in 109 minutes with a 50kW DC fast charger using a CCS adapter. For faster charging, an NACS V3/V4 Supercharger can achieve the same charge level in approximately 40 minutes.
Standard amenities on the IONIQ 9 S RWD include 19-inch alloy wheels, 255/60 R19 all-season tires, LED projector headlights, LED daytime running lights, and LED taillights. Additional features comprise automatic headlights, high beam assist, heated side mirrors with turn signal indicators, active grille shutters, aerodynamic wiper blades, and automatically retracting flush door handles. The interior is equipped with a proximity key, an 8-way power-adjustable driver’s seat with power lumbar support, heated front seats, a 12.3-inch infotainment touchscreen, and a 12.3-inch digital instrument cluster. Convenience is further enhanced by dual automatic climate control, second-row automatic climate control, dynamic voice recognition powered by generative AI, wireless Apple CarPlay and Android Auto compatibility, a Wi-Fi hotspot, and push-button start with a proximity key.
In line with most recent Hyundai models, the IONIQ 9 incorporates a comprehensive suite of standard safety features. These include blind-spot collision warning with haptic feedback on the steering wheel, rear cross-traffic avoidance assist, and front and rear parking distance warnings. It also boasts forward collision avoidance assist with pedestrian, cyclist, and junction turning/crossing detection, lane change assistance for oncoming and side traffic, and evasive steering assist. Further safety enhancements encompass lane keeping assist, intelligent speed limit assist, driver attention warning, forward attention warning, highway driving assist, and adaptive cruise control with stop-and-go functionality. Navigation-based smart cruise control with curve control, an advanced rear occupant alert system, and lane following assist are also integrated.
The IONIQ 9 offers generous interior dimensions, with a total passenger volume of 185.44 cubic feet. Legroom is plentiful, measuring 41.4 inches in the first row, 41 inches in the second row, and 39.7 inches in the third row, surpassing the second-row legroom of many SUVs. Cargo capacity is equally impressive, providing 21.9 cubic feet behind the third row, 46.7 cubic feet behind the second row, and a capacious 86.9 cubic feet with both rear rows folded flat. This exceeds the cargo space offered by the Volvo EX90.
The 2026 Hyundai IONIQ 9 is an exemplary vehicle that could significantly ease the transition for large families towards all-electric mobility. Its striking design, combined with an outstanding 335-mile range in the rear-wheel-drive configuration, eliminates typical EV anxieties. The added convenience of DC fast-charging capabilities further enhances its appeal. The modern and spacious cabin comfortably accommodates adults across all three rows, making it a highly practical choice. Furthermore, the September lease deal presents an exceptionally reasonable proposition for a near-premium electric SUV. Before finalizing any lease agreement, it is crucial to thoroughly examine all associated costs, including taxes, registration fees, and potential dealer charges, to ensure a clear understanding of the financial commitment.