More Prime Buyers Finance Used Cars Featured
03 March 2017
The average finance amount for new and used vehicle reached a record high in the fourth quarter of 2016.The average amount financed for new vehicles reached $30,621. The average amount financed for a used vehicle reached $19,329, up from $18,850 in the fourth quarter of 2015.The report also showed the number of consumers opting for auto finance contracts with terms of 73 to 84 months on their new vehicles increased to 32.1 percent from 29 percent in the fourth quarter of 2015. In the used car market, there was an increase in 73- to 84-month loans to 18.2 percent from 16.4 percent. The report also showed that used vehicle financing grew to 41.85 percent in the super prime consumer segment, an increase of 5.4 percent year over year. Moreover, used franchise and independent vehicle dealers saw their biggest year over year increases in super prime consumer lending, with 5.91 percent and 13.8 percent, respectively.