Auto Loan Terms, Leasing Reaching New Highs
Auto loan terms are getting longer and leasing is on the rise as car buyers seek lower monthly payments.
Experian Automotive says the average new-car loan was 67 months in the first quarter. The average used-car loan was 62 months. Both are the highest since Experian began tracking them in 2006.
Long-term loans lasting 73 to 84 months accounted for a record 29.5 percent of all new-car loans. That was up 19 percent from the first three months of 2014. Long-term loans for used cars rose 13 percent, to 16 percent of all used-car loans.
The average new car loan was a record $28,711. The average monthly payment rose $14 to $488.
A record 31.5 percent of new cars were leased. The average monthly lease payment dropped $7 to $405.