The average selling price of new vehicles reached a record high in late 2020. Last year also saw vehicle loan debt increase to record levels.
Even as retail sales growth is showing signs of stalling, consumers are continuing to borrow.
That could hurt consumers but benefit banks and dealerships.
New car sales have been high for the past few years, and that means there are a lot more car loans out there. There are a lot more delinquent ones, too. According to a report from the New York Federal Reserve, 7 million borrowers are at least 90 days late on their payments, the highest […]
There’s been a big increase in the number of long-term car loans purchased by U.S. drivers in recent years, according to a recent report by the Consumer Financial Protection Bureau. Longer-term loans mean smaller monthly payments for borrowers, but they also mean more risk. Click the audio player above to hear the full story.
Did we not learned anything in 2008?
The state of the auto loan market is causing some concern among analysts. Many are drawing comparisons with the mortgage-lending crisis that figured largely in the financial crash of 2008. At issue is the growing number of riskier, subprime loans. Default rates are going up too. And lenders are starting to get spooked. Click the […]
LendingClub, the peer-to-peer loan company, is getting into the auto loan business. Americans borrow over $500 billion a year to help pay for their cars. But there’s a lot of room on the road for more business — only $40 billion a year is refinanced. Also, Lending Club says the company has already invested in its […]
Experian says borrowers are "very prime," but not everyone agrees.
We're borrowing more cash than ever to buy cars - and banks are happy. For now.