ARLINGTON, Va. -- Car buyers are increasingly seeking longer indirect loan terms, according to the Consumer Bankers Association's 2004 Automobile Finance Study.

Five-year loans decreased from 50 percent of all loans last year to 45 percent this year. Loans with terms over five years made up 40 percent of all loans -- up 6 percent from the previous year.

The average new-loan size grew to $23,076, up from $21,779 last year.

Captive finance companies said they approved 5 percent fewer indirect loan applications this year. Average new-vehicle loan dollar delinquencies decreased from 1.58 percent last year to 1.19 percent this year. Similarly, average new-vehicle account delinquencies were down from 1.73 percent last year to 1.54 percent this year.

The average processing time for loan decisions was 24 minutes, down from 32 minutes a year ago.

A total of 49 lenders and lessors participated in this year's survey.

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