Car-Loan Amounts at Record High in U.S.

The average new-car loan in the U.S. climbed to a record high $30,600 in the fourth quarter of 2016, says global data provider Experian plc. A record one-third of borrowers signed up for contracts with terms of at least 73 months.

Experian reports a similar trend in used-car sales, where the average loan in October-December rose 3% to a record $19,300, and a record 18% of borrowers opted for deals running 73-84 months.

The average new- and used-car monthly loan payments are now $506 and $414, respectively. The average gap in loan amount for new and used cars is a record $11,000.

The total amount of unpaid loan balances in the U.S. car market rose to a record $1.1 trillion in last year’s fourth quarter from $987 billion in the same period of 2015, Experian says. The firm notes that lenders have been keeping delinquency rates below 2.5% by shifting to a higher proportion of prime and subprime customers as needed.