Amount Financed Drops, Interest Rates Rise, Reports Federal Reserve
The average amount financed on U.S. new-vehicle purchases declined in October to $25,391, according to the latest Federal Reserve Statistical Release.
WASHINGTON — The average amount financed on U.S. new-vehicle purchases declined in October, according to the latest Federal Reserve Statistical Release. The figure dropped to $25,391 per vehicle, down from $25,427 in September, and the lowest figure of the year. The loan-to-value ratio (LTV) on new-vehicle deals rose 1 point from September to reach 86 percent, but was still one of the lowest figures of this year.
Average loan maturity for October was 63.9 months, a slight decline from September’s 64.3, and below the 65.4 average for the third quarter 2008.
Interest rates on new-car purchases climbed in October to 6.41 percent. The rate is up from the 6.24 recorded in September and the 5.11 posted in August. Nonrevolving consumer credit, which includes auto loans, fell to an annual rate of 2.5 percent (or $1.6 trillion) in October.
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