Consumer Credit Increases in July
According to the recent Federal Reserve Statistical Release, consumer credit increased at an annual rate of 3.75 percent in July.
According to the recent Federal Reserve Statistical Release, consumer credit increased at an annual rate of 3.75 percent in July.
Nonrevolving consumer credit increased at an annual rate of 2 percent, down from the 5.3 percent increase in June and almost 2 percent from last year. Between May and July there was almost a $10 billion increase in seasonally adjusted consumer credit.
Interest rates at auto finance companies for new cars have increased to 4.74 percent from 4.66 percent in June, still slightly below the 4.88 percent seen in May.
Loan maturities have continued to slowly decrease over the past few months, hitting a high in May with 61.1 months, but dropping in June to 58.7 and falling by only 0.1 to 58.6 months in July. Loan-to-value ratio remained steady from June to July at 92 percent.
Amount financed is coming back up, falling to $26,929 in June from $27,163 in May, but rising again to $27,090 in July.
Nonrevolving consumer credit hit $1.540 trillion in July, up $4 billion from June and almost $8 billion from May. Finance companies represent the majority of that at $472 billion, a $6 billion increase from last month. Commercial banks represent $428 billion, the second largest segment, up $1 billion from June. Pools of securitized assets made up $234 billion of that, a $5 billion decrease from last month, while consumer credit in credit unions increased by $2 billion from June to $209 billion. Federal government and Sallie Mae remained about the same from June, together representing about $94 billion, and savings institutions and nonfinancial businesses remained steady as well at about $50 billion each.
More F&I

Trust Is Personal
Technology, no matter how efficient, can’t replace what the human F&I manager can do, which is to bridge the divide between cyberspace and the in-store experience.
Read More →
Amplify 2026 Billed as Turning Innovation Into Results
Reynolds and Reynolds says its annual retail summit will connect dealers with practical strategies, peer insight, and technology-driven ideas.
Read More →
Own Your Outcome: F&I in the Digital Customer Journey
Finance has historically been the last step in the car-buying process, but it doesn’t have to be. The customer’s journey starts long before they arrive at the dealership, and so should F&I’s involvement.
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 Lifetime Battery F&I Product Meant to Drive Dealer Traffic
EFG Cos. offering is intended to create lifetime auto dealer engagement with customers.
Read More →
The Psychology Behind Menus That Increase Add-On Sales
There is a science to crafting a menu that gives customers confidence in the choices presented, and moving the process outside the F&I office can further boost results.
Read More →
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 →