From Motor1 · Anthony Alaniz · · 1m
Car Loans Growing Longer And Bigger
New car buyers now take out loans over $45,000 with payments of $1,000+.
In brief
New car buyers now take out loans over $45,000 with payments of $1,000+. New car buyers increasingly finance vehicles with loans over $45,000 and monthly payments of $1,000 or more. Originally reported by Motor1.
New Car Loan Trends
More than 21 percent of new car purchases now have monthly payments of at least $1,000.
Loan Amounts Rising
Borrowers took out larger loans last quarter, averaging $44,664, up from $42,744 a year ago.
Longer Loan Terms
Just over a quarter of new-car buyers finance vehicles for 84 months or longer, up from 21.8 percent a year ago.
Higher Monthly Payments
The average monthly payment rose to $787 last quarter, up from $756 a year ago.
Four-Figure Payments
21.1 percent of financed purchases last quarter had monthly payments of $1,000 or more.
Hidden Costs
Longer loans cost buyers more interest, with average total interest over the life of the loan at $9,938.
What it means
New car buyers increasingly finance vehicles with loans over $45,000 and monthly payments of $1,000 or more.
