U.S. Car Buyers Embracing Long Term Loans
According to Automotive News,
the number of new car loans between 73 and 84 months has shot up from
11.7 percent in early 2009 to 33.8 percent this year. This is a
substantial increase of 22.1 percent and loans within that range are
tending to be on the longer side.
During the final quarter of 2016, 28.7 percent of new vehicle loans were for a term of 84 months. That means consumers are willing to make payments on their vehicle for seven years.
The used car market is also seeing a shift to long term loans, and some
analysts are surprised by what lenders are willing to do. As Experian
senior automotive solutions consultant Karl Kruppa noted, 10 percent of
loans for used vehicles from the 2010 model year are for between 73 and
84 months. That means the car could be up to 14 years old by the time
is it paid off.
(CarScoops.com)
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