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Outstanding Car Loans at Record High in U.S.
Americans owe a record $1.1 trillion on their car loans, up 7% from the second quarter of 2016, according to information service provider Experian plc.
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Americans owe a record $1.1 trillion on their car loans, up 7% from the second quarter of 2016, according to information service provider Experian plc.
The analysis say subprime activity to customers with poor credit rating accounted for 18% of the auto finance market, down one point. Prime loans climbed slightly to 39%. Superprime loans rose one point to 19%.
Experian says the average term for new-car loans in April-June was 68.8 months, up two weeks from the same period last year. The average monthly payment on new-car loans rose $5 to a record high $504.
U.S. consumers also continue to stretch out the terms of their car loans to keep monthly payments lower. Loans running between 61 and 72 months now account for 40% of the total market. Loans with terms of 73-84 months captured 33% of the market in the second quarter.
Experian says about one percent of new-car loans are for more than seven years.
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