Americans are borrowing at record levels to pay for their expensive cars
Inflation cools, new electric car tax credits explained, and Elon Musk's promisesReplayMore Videos ... (16 Videos)Inflation cools, new electric car tax credits explained, and Elon Musk's promisesBiden's student loan forgiveness plan: Who it helps, who it doesn'tMiddle class Black Americans react to economy under BidenEngineer says she 'quiet quit' her job. Hear what that meansFed official on recession talk: When we look at the data, I feel relievedInflation is cooling but prices are still painfully high'It didn't get worse': Romans breaks down key inflation dataOnline shopping prices are starting to ease. Here's why that's significantHere's how the Inflation Reduction Act could affect you'Jaw-dropping number:' Ex Obama economic adviser on the jobs reportJuly jobs report doubles expectationsEconomist explains how the energy and health care bill will lower inflationWhat is a recession?'I don't want to go bankrupt': High inflation leaves little room for unexpected costsFood bank demand skyrockets as cash-strapped Americans seek help over inflationProducts on the shelves getting smaller? You can blame 'shrinkflation'U.S. consumers are responding to surging prices for new cars and trucks by going deeper into debt, pushing the average new vehicle loan to a record-high $40,290 during the second quarter, credit monitoring company Experian said Thursday.
The average monthly payment for a new vehicle loan rose to $667 in the second quarter, up nearly 15% from a year earlier, Experian said in its latest report on the automotive finance market. The average amount borrowed rose 13.2%, Experian said.The length of the average new vehicle loan stayed flat in the second quarter compared to a year ago at just over 69 months.Used car buyers also are borrowing more. The average used vehicle loan jumped 18.7% to $28,534, with an average monthly payment of $515, up 17%.Despite the Federal Reserve's efforts to cool the economy by raising interest rates, prices of new vehicles in the United States have been rising faster than overall inflation rate for much of the year. Automakers say they still cannot keep pace with demand because of shortages of semiconductors and other supply chain snarls.Read MoreThe price of the average new car or truck hit a record $46,259 in August, market research firm J.D. Power said this week. Experian said loan data show that more consumers are opting for a used car or truck as new vehicle prices rise. Used vehicles accounted for 61.8% of all vehicle loans during the second quarter, up from 58.5% a year earlier.Of vehicles financed in the second quarter, 60% were sport utility vehicles, Experian said.Click Here To Get Funded!