At a record 69.3 months, average new-vehicle finance terms have stretched 6.8% from five years ago. The average amount financed and average monthly payment also registered new highs.
Reflecting the shift toward more creditworthy borrowers was the rise in average credit scores for both new- and used-vehicle loans. But the retreat from the high-risk tiers also comes during a quarter in which the average new-vehicle finance amount and monthly payment reached record highs.
Edmunds.com has released an online tool to help consumers determine the expected price – and boost their bargaining position – on a new-car purchase.
Things are still challenging for below-prime customers, but the middle tiers are beginning to show signs of life, Experian Automotive reveals.
Sixty-day delinquencies are on the decline and credit quality continues to improve, but lenders still favored prime customers in the first quarter.
The auto finance market continued to stabilize in the fourth quarter, as the crash of 2008 continues to become a distant memory. New financing, however, will remain the domain of the prime and superprime tiers in the months to come.
The economic downturn has put more than $25.5 billion in auto loans at risk, but there were some signs of improvement. Experian Automotive’s director of automotive credit gives her take on what continues to be an unpredictable market.
The average interest rate for new-car loans decreased in July, while the amount financed increased, according to the latest Federal Reserve Statistical Report.
The NAF Association’s annual survey revealed the stress finance companies felt heading into 2009, but it also illustrated a firmer grasp of what was at stake. The question is whether this understanding will make financing widely available again.
The average interest rate for new-car loans rose slightly in May, while the amount financed increased, according to the latest Federal Reserve Statistical Report.
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