Outstanding consumer credit increased at an annual rate of 1.75 percent in September, down from the 6-percent increase reported in August, according to the recent Federal Reserve Statistical Release. Consumer credit increased at an annual rate of 5.25 percent in the third quarter of 2007.

Nonrevolving consumer credit, which includes auto loans, increased at an annual rate of 0.3 percent, or $3 million. In August it rose by a revised 6.4 percent.

Interest rates at auto finance companies for new cars increased to 4.48 percent in September, up again after dropping to a four-month low of 4.15 percent in August.

Loan maturities remained relatively steady from August to September, increasing slightly from 62.6 months to 62.9 months. The loan-to-value ratio increased slightly, up from 95 percent in August to 96 percent in September.

Amount financed continued its upward trend, increasing $1,818 since July to $28,908 in September.

Nonrevolving consumer credit hit $1.569 trillion in September, up about $5 billion from August. Finance companies represent the majority of that at $485 billion, remaining steady from August. Commercial banks represent the second largest segment, up $4 billion from August at $439 billion. Pools of securitized assets made up $233 billion of that, a $1-billion decrease from last month, while consumer credit in credit unions remained steady at $209 billion. Federal government and Sallie Mae increased by $1 billion from August, together representing about $98 billion. Savings institutions and nonfinancial businesses remained steady at about $58 billion and $46 billion, respectively.

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