#new car loans
New-car loans keep getting longer
New car sales are running at near peak levels, partly because many consumers are financing their purchases for longer terms. USA TODAY
Roger Rodriguez looks at a F-150 pickup in 2013 on the showroom floor at an AutoNation Ford dealer in North Miami, Fla. (Photo: Joe Raedle, Getty Images)
New-car sales are running at near-peak levels. partly because many consumers are financing their purchases for longer terms.
The average new car loan has reached a record 67 months, reports Experian, the Ireland-based information-services company. The percentage of loans with terms of 73 to 84 months also reached a new high of 29.5% in the first quarter of 2015, up from 24.9% a year earlier.
“While longer-term loans are growing, they do not necessarily represent an ominous sign for the market,” said Melinda Zabritski, Experian’s senior director of automotive finance. “Most longer-term loans help consumers keep monthly payments manageable while allowing them to purchase the vehicles they need without having to break the bank.