Consumer Borrowing Increases in September
Consumer credit increased at an annual rate of 1.1 percent, or $2.1 billion, in September, according to the Federal Reserve’s monthly report.
Consumer credit increased at an annual rate of 1.1 percent, or $2.1 billion, in September, according to the Federal Reserve’s monthly report.
Non-revolving credit, which includes auto loans, increased at an annual rate of 7.9 percent, or $10.4 billion, in September. Revolving credit fell at an annual rate of 12.1 percent, or $8.3 billion.
Interest rates on new-vehicle loans increased to 4.35 percent in September, compared to 4.01 in August and 3.87 percent in July.
Loan terms were 63.7 months, similar to 63.8 months in August and 63.7 months in July.
The loan-to-value ratio on new-car loans was 86 percent, down slightly from 87 percent in August and July.
Amount financed fell for the second consecutive month to $27,894 in September, down from $27,970 in August and $28,377 in July.
More Auto Finance
Dealerships Are Paying the Price for Extended Car Loans
Growing negative-equity scenarios mean such lengthy terms should be addressed in a forward-looking way to make them work for the dealer and the consumer down the road.
Read More →
Trade-Ins in Negative Equity Reach New Heights
As such trade-ins rise in frequency, so do monthly loan payment amounts and interest rates, according to second-quarter data compiled by Edmunds.
Read More →
Auto Credit Plentiful
June numbers show lenders are readily granting access, including to risky borrowers, as consumers leverage themselves to take on high prices.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Porsche Financial Services Shifts Structure
After 36 years with Porsche, the Financial Services Chief Financial Officer Konrad Riedl is retiring, and the department is realigning its management structure.
Read More →
Tariffs Could Raise Insurance Premiums
As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.
Read More →
Smaller Loans, Longer Terms
The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.
Read More →
New Cars a Tad More Affordable
May averages show that combined circumstances gave auto consumers slightly better buying power for the month, though average prices were up year-over-year.
Read More →
First-Quarter Sees Long Auto Loan Growth
Experian data show more consumers are tapping the method, along with refinancings, to afford buying. Meanwhile, subprime borrowers are getting more access.
Read More →
Mastering Credit Friction
In this video, Josh Krach explains how to turn credit friction into an advantage.
Read More →