Consumers, already paying an average of nearly $34,000 for a new car or truck, may be reaching the end of their proverbial ropes as far as affordability is concerned.
According to data compiled by Experian Automotive in Schaumburg, Ill., car buyers are going deeper into debt and for longer periods than ever to keep their payments manageable. During the third quarter of 2015, Experian says the average amount financed for a new vehicle was $28,936, which is up $1,137 from the same period in 2014. On top of that, 27.5 percent of buyers are now extending their new-vehicle indebtedness to between 73 and 84 months — that’s as long as seven years.
What’s more, new-vehicle leasing, which typically allows a lower monthly payment but affords no actual ownership, now accounts for around 27 percent of all transactions. That’s up from 24.7 percent a year earlier and is at the highest level since Experian began tracking leasing data in 2006.
— Jim Gorzelany
© CTW Features
