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.