Car Buyers Borrow More for Longer Periods, Experian Study Shows
America's car buyers are extending themselves and their credit more than ever before as they buy new vehicles. At the same time, a larger proportion of U.S. buyers are being shut out when it comes to new-car buying. Those are the key conclusions drawn from the just-released 2021 State of the Automotive Finance Market report from Experian, a major finance information reporting service.
Photo: Christian Wardlaw
This year consumers are borrowing more money in their pursuit of SUVs and other higher-cost vehicles. For the first quarter, the average new-vehicle loan amount was $35,392. That's up from $33,833 in the same quarter last year. The average monthly payment on a new-car loan was $577, up $7 from the same period a year ago
As the amounts borrowed have grown, the creditworthiness of the borrowers has increased as well. The average credit score of a buyer getting a new-car loan in the first quarter of this year was 734. In the first quarter of last year, it was 728.