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Posts Tagged ‘auto financing news’

Millennials Spending Big on Cars — With Auto Loans to Match

Everything's bigger in Texas, including auto loans.

by Michael Strong on Nov.07, 2018

Texas millennials have higher auto debt than anywhere else in the country, largely because they purchase trucks.

The adage says everything is bigger in Texas. Well, when it comes to car loans, it’s true.

A new survey by Lending Tree reveals that millennials in the Lone Star State are spending big on new vehicles – trucks – and have the large car loans to prove it. Texas is the nation’s largest consumer of new trucks, which are typically not cheap.

News You Can Trust!

More than 25% of all registered vehicles in Texas in December 2017 were privately owned, non-fleet trucks. Ford F-Series trucks sold at a national average transaction price of $46,600 per truck in September. Texans prefer trucks to the point that six manufacturers — GMC, Ram, Ford, Nissan, Chevy and Toyota — have Texas-edition trucks in their line-up. (more…)

Auto Loan Delinquencies Rose Last Quarter

Auto financiers loading up on subprime loans to keep boom going.

by Joseph Szczesny on Nov.16, 2017

Auto loan delinquencies rose slightly during the third quarter as finance companies continue loading up subprime loans.

The Federal Reserve Bank of New York reported this week that auto loan delinquencies increased during the third quarter and noted that auto finance companies continued to load up subprime loans as they labored to keep the boom in car sales afloat again this year.

The increase in auto-loan delinquencies was a rather modest 2.4% in the quarter ending Sept. 30, compared with 2.3% in the second quarter ending June 30, according to the Center for Microeconomic Data’s Quarterly Report on Household Debt and Credit.

News You Can Trust!

The report also said that total consumer debt increased by $116 billion or 0.9% to $12.96 trillion in the third quarter of 2017.  (more…)

Auto Loan Delinquencies on the Rise

Leasing, longer-term loans on the rise in U.S.

by Joseph Szczesny on Feb.26, 2016

Fitch Ratings is warning that the subprime delinquency rate is on the rise.

Even with sales booming, the auto industry got another warning about easy credit as Fitch Ratings reported that delinquencies on U.S. subprime auto-related asset backed securities have reached a level not seen since the 2008-2009 recession.

The underperforming loans, which have been bundled into securities sold to investors, come from recent vintages driving the increase, according to Fitch. A recent report from Experian also noted rising level of delinquencies in car loans.

Picking up on the Trends!

Earlier this week, analysts from J.D. Power & Associates, while predicting strong sales for February, noted consumers are opting for leasing and long-term loans at record levels. So far in February, leases and loans of 72 months or longer combined to represent 65.1% of all retail sales, a record level for any month. The previous record was set in January 2016 at 64.3%, according to John Humphrey, J.D. Power & Associates top analysts. (more…)