Experian Automotive estimates that the average amount financed to purchase a vehicle breached record levels set earlier this year and were the highest in eight years. According to Experian, the average amount financed to buy a new vehicle was $27,799 (up 4 percent) in the third quarter and to purchase a used one was $18,876 (up 4 percent) in the same period.
According to Melinda Zabritski, Experian’s senior director of automotive finance, average monthly payments also jumped in the period despite consumers’ continued willingness to apply for leasing and longer loan lengths.
The company disclosed the average monthly new-vehicle payment jumped 3 percent in the third quarter to $470. The record average was set in the first quarter of 2014 at $474.
On the other hand, the average monthly used-car payment surged 2 percent to a new high at $358, breaking the $355 record set in the second quarter this year.
Experian also estimates that the average used-vehicle loan term set a new high in the third quarter at 62 months, breaking the average of 61 months in the first and second quarters this year. Meanwhile, the average term for new-vehicle loans in the third quarter was 66 months. The company said that lease penetration jumped in the period to 24.7 percent of all new-vehicle volume.