The average loan amount and monthly payment for new vehicles reached record highs in the first quarter, Experian said Thursday in its State of the Automotive Finance Market report.
The average loan amount for new vehicles in the first quarter rose 3 percent to $31,455 – a $921 change from the year earlier. The average monthly payment for a new-vehicle loan increased 3 percent – or $15 – to $523.
And they wonder why people are broke.
It’s because they are in debt up to their eyeballs! (creditninja.com can help, if that’s you.)
The average new-vehicle loan term grew to 69 months, compared with 68.5 months the year earlier.
New-vehicle loan originations with terms of 61 to 72 months also increased to 41.3 percent.
Loan balance is also climbing, but at a slower rate than in previous quarters. Total open automotive loan balance in the first quarter rose 2.33 percent to $1.10 trillion. The growth rate between the first quarters of 2016 and 2017 was 7.82 percent. From the first quarter of 2015 to the first quarter of 2016, loan balance jumped 11 percent.
Of the open loan balances, credit unions’ share increased the most, rising 11.1 percent to $319 billion.
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