Amount Financed Continues to Decline, Interest Rates Rise
The average amount financed on U.S. new-vehicle purchases continued to decline in November 2008, according to the latest Federal Reserve Statistical Release.
WASHINGTON — The average amount financed on U.S. new-vehicle purchases continued to decline in November 2008, according to the latest Federal Reserve Statistical Release.
The figure dropped for the fifth-consecutive month down to its lowest point of the year at $25,041 per vehicle, down from $25,391 in October 2008. The loan-to-value ratio (LTV) on new-vehicle deals rose 2 points from October 2008 to reach 88 percent, but was still one of the lowest figures of this year.
Average loan maturity for November was 63.2 months, a slight decline from October’s 63.9, and below the 65.4 average for the third quarter 2008.
Interest rates on new-car purchases climbed in November to 6.43 percent. The rate is slightly up from the 6.41 recorded in October, but below the third quarter average of 6.54. Nonrevolving consumer credit, which includes auto loans, rose to an annual rate of 3.9 percent (or $1.5 trillion) in November.
More F&I
Why Your F&I PVR Is Misleading You
Here’s a handy checklist of the numbers to track in 2026 instead.
Read More →
Auto Consumer Anxiety Presents Opportunity
A survey of U.S. drivers found the majority are concerned about finances and the economy, but those fears make many ready to buy vehicle-protection products.
Read More →
Humble and Hungry: 12 Rules for an F&I Life
Dustin Gingerich, with a decade in the F&I business under his belt, shares his thoughts on leadership, building trust with customers, and the importance of learning and innovation.
Read More →
Focus on the Opening
F&I managers must learn as much as possible about their customers, starting before they walk into their offices. The bulk of today’s consumers expect that, and good results will follow.
Read More →
F&I Reaches for the Sky
The increasingly important profit center continued making gains in the first quarter, according to StoneEagle data, ancillary products proving more popular as consumers hold onto their buys longer.
Read More →
Timing the Market Can Hurt Long-Term Program Performance
For dealer-owned reinsurance entities, avoiding volatility entirely can mean falling behind inflation and missing market rebounds that drive long term surplus growth. Missing just a handful of strong market days can materially impact cumulative returns—an important reminder for long horizon trust and investment strategies.
Read More →
The 90/10 Rule
In this video, Ryan Ruff explains the rule that elite sales professionals use to turn ordinary conversations into unforgettable customer experiences.
Read More →
Your Office Is Talking
What’s the atmosphere saying about you to your customers? You can make minor adjustments and additions that transform your space into one that creates trust with the people on the other side of the desk.
Read More →
F&I Training Fundamentals
How can auto dealerships help F&I managers fulfill their vital role in the most effective ways? Industry expert Rick McCormick shares his insights on the best ways to train these professionals and help them maintain good habits.
Read More →
Not Just Any Tire Will Do
More consumers and businesses are opting for all-season options for various reasons as safety, sustainability and convenience push practical change.
Read More →