/ Industry, News / US: loans reach new monthly payment record

US: loans reach new monthly payment record

Linked In Share
US: loans reach new monthly payment record

A new study reveals that the a big part of the automotive growth is based on consumers that pay more than before and also seek loans that reach record durations.

US data tracking firm Experian Automotive has revealed its latest installment in the State of the Automotive Finance Market, which shows monthly payments reach record levels, while buyers also increasingly turn to leases now to help them offset the purchase of a new car.

“Consumers are really relying on financing as the price of new vehicles continues to move higher,” said Melinda Zabritski, Experian’s senior director of automotive credit. “Consumers clearly are stretching the loan term to help lower monthly payments, keeping them at a manageable level. The flip side of that is consumers can pay more in interest or being upside-down on their loan if they seek to trade their vehicle in early,” noted Zabritski. “It is definitely a choice that consumers will want to weigh carefully before making a final purchasing decision.”

While sales have now fully rebounded from the slump in demand caused by the recession, the Average Transaction Price shows that new car prices are going up – reaching record levels lately.

The Experian study shows the usual loan was of around $27,612, which is a new record, jumping $964 from last year’s study. The average monthly payment also reached a new record, climbing $15 from the first quarter of 2013 to $474 per month. Consequently, the average new vehicle loan is now stretched to a record period of five-and-a-half years, while 24.9% of buyers opted for 73 to 84 months contracts.

by Aurel Niculescu (my Google+) - Tuesday, June 3rd, 2014 - filed under Industry, News. Image credit: .
Linked In Share
Related Articles
loans monthly payments record study us


Discuss: US: loans reach new monthly payment record

Leave a Reply















Inautonews Facebook PageInautonews RSS FeedInautonews TwitterInautonews Youtube Channel

Sign up to receive our email newsletter on your email. It's safe. No spam!

Mercedes-Benz GLC Coupe teased for Shanghai
Mercedes-Benz GLC Coupe teased for ShanghaiMercedes-Benz will be officially pulling the wraps off the brand new GLC Coupe during the 2015 Shanghai Motor Show, in a few ...
Kaege tunes the Porsche Macan S Diesel
Kaege tunes the Porsche Macan S DieselThe aftermarket specialists from Kaege have released the first details and images with their very own version of the Porsche ...
Teased – Honda compact crossover
Teased – Honda compact crossoverThe first official sketch with the new compact crossover signed by Honda has been released by the company and this will be making ...
2015 New York Auto Show: Volkswagen Golf SportWagen Alltrack
2015 New York Auto Show: Volkswagen Golf SportWagen AlltrackThe Volkswagen Golf SportWagen Alltrack has been officially introduced over-seas at the 2015 New York Auto Show. After debuting ...
2015 New York Auto Show: Mysterious Subaru BRZ spotted
2015 New York Auto Show: Mysterious Subaru BRZ spottedA mysterious example of the Subaru BRZ has been photographed recently while being on display at the 2015 New York Auto Show. The ...
2015 New York Auto Show: New-gen Jaguar XF
2015 New York Auto Show: New-gen Jaguar XFThe public debut of the new Jaguar XF generation has been made recently during the 2015 New York Auto Show. After being ...
[VIDEO] Ferrari LaFerrari revving its engine in underground parking lot
[VIDEO] Ferrari LaFerrari revving its engine in underground parking lotA recent video with the Ferrari LaFerrari is showing the hypercar revving its engine in an underground parking lot. Despite ...
Hyundai chairman receives slight payment uptick
Hyundai chairman receives slight payment uptickChung Mong-koo, the chairman of Hyundai Motor Co, the fifth largest carmaker in the world when considered with affiliate Kia ...
Recall roundup: BMW 4-Series Convertible
Recall roundup: BMW 4-Series ConvertibleThe BMW 4-Series Convertible is the subject of a recall because of a problem with its airbags. BMW has recently issued a recall ...
Opel Corsa LPG unveiled
Opel Corsa LPG unveiledThe Opel Corsa LPG is the newest addition to the Corsa family as this has been officially unveiled by the German based automaker ...
Mercedes-AMG Sprinter 63 S goes official on April Fool’s Day
Mercedes-AMG Sprinter 63 S goes official on April Fool’s DayMercedes has officially pulled the wraps off the new Sprinter AMG 63 S on April Fool’s Day. A high-performance van has been ...
UAW’s ranks lifted by 12,000 new members in 2014
UAW’s ranks lifted by 12,000 new members in 2014The United Auto Workers union had a membership surge last year, with 12,000 new people being affiliated for a total membership of ...
2015 New York Auto Show: Four Volkswagen Beetle Concepts unveiled
2015 New York Auto Show: Four Volkswagen Beetle Concepts unveiledNo less than four concept versions of the Volkswagen Beetle have been officially unveiled by the carmaker during the 2015 New ...
Auto parts maker Robert Bosch to plead guilty in US price fixing case
Auto parts maker Robert Bosch to plead guilty in US price fixing caseRobert Bosch GmbH, the German auto parts maker that counts as the largest supplier in the world, has opted to plead guilty to ...
US: collapsing oil prices spark bullish predictions for auto sales
US: collapsing oil prices spark bullish predictions for auto salesThe US auto industry is tracking towards achieving its sixth annual sales growth, one of the longest positive streaks in history ...
Read more automotive news


2015 Geneva Motor Show Coverage

mercedes-benz glc coupe
Porsche Macan S Diesel Kaege tuning 1
2017 Volkswagen Golf SportWagen Alltrack 1
subaru brz sti new york 1
Opel Corsa LPG 1
Mercedes-AMG Sprinter 63 S 1
Four Volkswagen Beetle Concept unveiled new york 1
Rolls-Royce Wraith Inspired by Film special edition 1
Scion iM 1
2016 Chevrolet Malibu 1
Scion iA 1
2016 Mazda MX-5 Miata Club 1

More automotive from inautonews
Mercedes-Benz will be officially pulling the wraps off the brand new GLC Coupe during the 2015 Shanghai Motor Show, in a few weeks. The development of the Mercedes-Benz GLC Coupe is no longer a surprise as the model in question has been spied and officially confirmed. This will be targeting models ...
read more
Inautonews Editors Section
Test Drive – Mitsubishi ASX 2.2 Diesel AT Instyle 4WD
Test Drive – Mitsubishi ASX 2.2 Diesel AT Instyle 4WD The Mitsubishi ASX can be called just about anything except for “new” and this is the word we are looking for because the company seems to have ...
Test Drive – BMW 2-Series Active Tourer 218d
Test Drive – BMW 2-Series Active Tourer 218dIn an attempt to keep production costs low and to go ahead with its times, the 2-Series Active Tourer is the first vehicle made by BMW with a ...
Test Drive: BMW 225i Active Tourer
Test Drive: BMW 225i Active TourerOne word of advice from the very beginning – if you’re a BMW purist that believes the blue-white logo has nothing in common with front wheel ...

Editors Section
Inautonews Editors Section
2012 Safest Cars list 2011 Safest Cars [Video] 2011 IIHS Safest Cars [Video] 2011 EuroNCAP Safest Cars 2010 Safest Cars [Video]

Latest in Safety Recall roundup: BMW 4-Series ConvertibleThe BMW 4-Series Convertible is the subject of a recall because of a problem with its airbags. BMW ... Recall roundup: BMW motorcyclesBMW has issued a recall for certain model year motorcycles because of the mounting flange on the ...
Safety Section