Car buyers are actively searching and studying all available options for covering their vehicle expenses, according to Experian's latest findings on the State of the Automotive Finance Market.
Extending loan terms and opting for used rather than new vehicles are some of the more common methods consumers utilize to manage their monthly payments. Today's average monthly payments are $550 for new vehicles and $392 for used.
"In previous years, it was common for most prime borrowers to opt for new vehicles," said Melinda Zabritski, Experian's senior director of automotive financial solutions. "These vehicles tend to have better warranties and require less upfront maintenance. But with loan amounts for new and used vehicles on the rise and a higher volume of vehicles coming off-lease, there are late-model options available that borrowers can consider. It's important for the industry to keep an eye on these trends to help inform future business decisions."
Additionally, new vehicle leasing saw a slight drop from 30.4 percent in Q2 2018 to 30.04 percent in Q2 2019.
Visit Experian’s website to know more about its Q2 2019 State of the Automotive Finance Market report