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

Top News

Amount Financed, Avg. Maturity and LTV Increase, Fed Reports

September 9, 2008

WASHINGTON — The average amount financed on U.S. new-vehicle purchases rose in July, according to the latest Federal Reserve Statistical Release. The figure dropped to $27,528 per vehicle, up from $24,505 in June and $25,493 at the end of the second quarter. The loan-to-value ratio (LTV) on new-vehicle deals improved by three points from June to reach 96 percent, and represented the second consecutive month of increases.

Average loan maturity for July was 67.2 months, an increase from June’s 63.5, and stands as the highest mark for the year so far.

Interest rates on new-car purchases also continued to improve. After a slight decline from 5.82 in May to 5.49 in June, the July rate declined to 3.31 percent. Nonrevolving consumer credit, which includes auto loans, rose at an annual rate of 0.5 percent (or $1.6 trillion) in July.

Your Comment

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



Compli Partners With Risk Management Firm To Provide Health and Safety Content to Dealerships

As part of Compli's continuing effort to provide compliance protection to auto dealerships, Compli and Environmental and Occupational Risk Management (EORM) of San Jose, Calif., have formed an alliance to provide top-tier Environmental, Health and Safety (EH&S) information and content to dealers through Compli's Dealership Compliance Management System (DCMS).