The Industry's Leading Source For F&I, Sales And Technology

Special Finance®

Consumer Credit Rebounds to Pre-Cash for Clunkers Levels

December 01, 2009

Consumer credit patterns returned to their status quo in September, with interest rates, loan terms and loan-to-value ratios reverting to their pre-Cash for Clunkers (C4C) levels, according to the Federal Reserve’s monthly report.

The loan-to-value ratio, which fell to 86 percent in August during C4C, rebounded to 91 percent in September.

The amount financed increased from $24,405 in August to $30,380 in September. Year-to-date, this was the highest level for amount financed for new-car loans.

Additionally, interest rates decreased from 4.06 in August to 3.5 in September, which is more closely aligned with the July figure of 3.43 percent. Loan lengths increased slightly from 61.8 months in August to 63.6 months in September.

Your Comment

Please note that comments may be moderated. 
Leave this field empty:
Your Name:  
Your Email:  



60-Day Rate Rises, But Following Cyclical Pattern, Says TransUnion

The national 60-day auto delinquency rate rose between the second and third quarters, but analysts for said the rise was consistent with what’s occurred in 2009. The report also showed that some states are emerging from the recession faster than others.