Will Long Auto Loans Have Long-Term Impact on Auto Industry?
Long auto loans are becoming the norm, but so far this does not seem to be a chief concern among automotive dealers. Despite personal incomes not going up much, the average transaction price for a vehicle is rising (typical amount financed is an all-time high of $27,612) … and sales volume is going up, too.
Something has to give, and the end result has been long auto loans that span as many as 84 months. By extending the loan terms, the monthly payments become more manageable – a great thing today for both consumer and dealer. But what about tomorrow? Read More