Used Car Financing Reaches Record Featured

By Staff Writer June 01, 2018

Financing for used vehicles reached $19,536 in the first quarter, a new record high, reports Experian.

The average credit score for a used vehicle loan rose to 655 during the same period.

Experian also reports that the average new vehicle loan hit $31,455 in Q1 2018, an increase of $921 from the previous year. The monthly payment for a new vehicle climbed to $523, a $15 increase over the same period. The average interest rate for a new vehicle was 5.17 percent during the quarter.

Finance terms for new vehicles have also increased during the quarter (slightly above 69 months). While 72-month loans remain the most common loan term, more new loans have spilled into the 85- to 96-month bucket.

The population segments most impacted are subprime and deep subprime consumers. The percentage of new vehicle loans to subprime and deep subprime consumers has decreased 8.4 percent and 14.1 percent, respectively. The percentage of new vehicle loans to prime and super prime consumers has reached 73.4 percent, the highest first-quarter level since 2012.

Last modified on Friday, 01 June 2018 13:34

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