A newly released report by Experian, State of the Automotive Finance Market, shows a surge in auto loans that should be a boon for the credit union industry. The report shows that Q4 2018 continues a series of record highs for loan balances with all lenders experiencing growth. It also points to borrowers’ credit scores increasing with the majority of growth in super prime segments.
The report shows that loan amounts hit record highs with monthly payments reaching highs driven by rate increases. Interest rates for new vehicle loans was 6.13 percent, up from 5.11 percent a year ago. For used vehicle loans, the average interest rate was 9.59 percent.
“As loan amounts, monthly payments and interest rates continue to rise, there are a number of factors for consumers to consider as they research their car-buying options,” said Melinda Zabritski, Experian’s senior director of automotive financial solutions. “While consumers appear to be doing their due diligence when making borrowing choices that fit their budget, lenders also play a large role. Every consumer deserves access to quality credit, and lenders should leverage all available data to offer the most comprehensive financing options to car shoppers.”
Learn about the LEVERAGE partnership with Credit Union Loan Source and how your credit union can benefit in the automotive loan sector here.