Detroit Bureau on Twitter

Posts Tagged ‘new vehicle loans’

Car Buyers Getting Longer Auto Loans

Terms continue get longer as buyers look for lower payment.

by on Mar.09, 2017

Car buyers are using longer-term loans with increasing frequency to lower their monthly payment.

Consumers continue to use longer-term loans to reduce the costs of monthly payments when they purchase a new vehicle with almost one third opting for loans of between six and seven years, according to new data from Experian, the credit monitoring service.

Experian, in its latest report on the State of Automotive Finance Market, also found the average loan amount for a new vehicle reached a record high of $30,621 in the fourth quarter 2016. The average loan amount for a used vehicle also reached record levels, jumping from $18,850 in fourth quarter 2015 to $19,329 in in the fourth quarter of 2016.

Drive On!

Total open automotive loan balances reached a record high $1.072 trillion in the fourth quarter of 2016, up from $987 billion the same period in 2015 but the growth in loan balances has slowed, the report said. (more…)

‘Under Water’ Trade Ins Hitting New High Water Levels

New car buyers taking bigger hits to get new vehicles.

by on Nov.28, 2016

New car buyers are trading in vehicles with more negative equity than ever — almost $5,000 on average.

A new statistic reveals that these days if Americans want a new car, truck or utility vehicle, they’ll do just about whatever it takes to get a deal done — including taking a huge hit on their trade in.

According to Edmunds.com, about 32% of all vehicles traded in on a new vehicle through September this year were “upside down.” That is to say, the owner owed more on the vehicle than it was worth, and the number is rising. It was 30% for the same period last year.

Your Auto Insider!

That negative equity averaged $4,832. In short, add $5K to the price of that next vehicle being purchased. (more…)