Amount and Length of Auto Loans Keep Growing
In the 4th quarter on 2016, average loan balances and term of the auto loans continued to grow. Here's the stats from Experian:
- Average New Car Loan Balance - $30,621 (Up 3.6% from Q4 2015)
- Average Used Car Loan Balance - $19,329 (Up 2.5% from Q4 2015)
- % of New Car Loans with Terms Between 73-84 Months - 32.1% (vs. 29% in Q4 2015)
- % of Used Car Loans with Terms Between 73-84 Months - 18% (vs. 16% in Q4 2015)
Obviously, as cars become more expensive and loan balances continue to increase, consumers are looking for ways to make their car payment affordable. That is why we continue to see consumers opt for longer terms.
Experian also noted that more consumers are opting to lease new cars. Their data shows that the average new car lease payment is $414, which is $92 less than the average new car finance payment.