Amount Financed Down, Avg. Maturity and LTV Stabilize, Fed Reports
The average amount financed on U.S. new-vehicle purchases continued to decline in June, according to the latest Federal Reserve Statistical Release.
WASHINGTON — The average amount financed on U.S. new-vehicle purchases continued to decline in June, according to the latest Federal Reserve Statistical Release. The figure dropped to $24,505 per vehicle, down from $24,579 in May and $28,174 at the close of the first quarter. The loan-to-value ratio (LTV) on new-vehicle deals improved slightly, from 92 percent in May to 93 percent in June.
Average loan maturity for June was 63.5 months, a slight decline from May's 64, which stands as the high mark for the year so far.
Interest rates on new-car purchases also showed a slight improvement. After jumping from 4.54 percent in April to 5.82 in May, the June rate declined to 5.49 percent. The annual rate for nonrevolving consumer credit, which includes auto loans, has been relatively stable throughout the year and continued to hover around 1.6 percent (or $1.6 trillion) in June.
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