Vehicle Loaning, Leasing Way Up
"Loans have become more accessible in recent years, and we've seen a steady growth in the percentage of consumers financing their vehicles," said Melinda Zabritski, senior director of automotive credit for Experian Automotive, in a statement. "Obviously, this is good news for the auto industry, but it's also good for consumers because this, combined with the reduction we have seen in delinquencies, shows that they are feeling more confident in their ability to take on more debt and pay it off in a timely manner."
Findings from the report showed that of all new vehicles financed, leases accounted for an all-time high of 27.64% during the second quarter, up from 24.4% in the second quarter last year. The firm says the average monthly lease payment was $408, compared with $457 on a new vehicle loan.
But a lot of those were sub-prime, at 27.45% market share in in the second quarter this year, up from 25.41% in the second quarter last year. For used vehicles these lower credit ratings -- nonprime, subprime and deep-subprime loans -- accounted for 57.31% market share in the second quarter this year, up from 56.46% in the second quarter last year.
The firm says that among other findings, the average amount financed was $26,526 for a new vehicle and $17,913 for used. The average loan term was 65 months for a new vehicle and 61 months for a used vehicle.