Smart Borrower Blog

Archive for the ‘Auto Loans’ Category

New Car Buyer Monthly Payments Reach Record High

Jun 6th, 2018 @ 11:08 AM by Amber Nelson

Americans are paying more than ever for new cars, according to credit compiling firm Experian, and monthly payments have reach new heights, pushing affordability to record lows. During the first quarter of 2018, the average auto loan for a new vehicle topped $31,455, up $921 from the year before. The average monthly payment on new […]

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Truck Popularity Pushes Average Loan Terms to New Highs

May 2nd, 2018 @ 8:25 PM by Amber Nelson

U.S. consumers love their trucks and SUVs – and lenders are having to get creative again with financing in order to satisfy demand. According to consumer credit company Experian, the average loan term for truck and SUV purchases has grown to record levels. The Ram truck brand, owned by Fiat Chrysler Automobile NV, had the […]

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4th Quarter Consumer Delinquencies Fell to Record Levels

Apr 11th, 2018 @ 7:44 PM by Amber Nelson

Delinquency rates across a broad-range of loan categories decreased in the 2017 fourth quarter, according to the American Bankers Association, a sign that the growing economy is helping consumers stay on top of their debt. The ABA’s Consumer Credit Delinquency Bulletin showed that delinquencies – loans that are more than 30 days past due – in […]

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Fed Hikes Interest Rate to Highest Level in a Decade

Mar 21st, 2018 @ 8:19 PM by Amber Nelson

With the economy pushing forward, the Federal Reserve’s Federal Open Market Committee raised its target interest rate once again, pushing it to the highest level since 2008. During its March 21 meeting, the Fed increased its federal funds rate to 1.75%, up from 1.5%. Rates still remain well below the historical average of 5%. “The […]

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Auto Loan Origination Growth Takes a 9-Year Tumble

Feb 28th, 2018 @ 9:12 PM by Amber Nelson

Americans bought fewer vehicles in the fourth quarter of 2017 than the previous year, according to the New York Fed Household Debt and Credit Report, with the biggest annual decline in close to a decade. During the 2017 fourth quarter, there were $142 billion in auto loans and leases originated for new and used cars […]

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Auto Loan Delinquencies Rise in 3rd Quarter

Jan 31st, 2018 @ 8:57 PM by Amber Nelson

American borrowers fell behind on their car payments in greater numbers during the 2017 third quarter, according to new data from the American Bankers Association. And yet, delinquencies in many other loan categories fell, giving mixed signals about the strength of American consumer finances. The ABA Consumer Credit Delinquency Bulletin revealed that delinquencies rose in 5 […]

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Car Loan Delinquencies Continue to Rise Even As Unemployment Falls

Nov 29th, 2017 @ 9:35 PM by Amber Nelson

More and more Americans are falling behind on their car loan payments, according to new data from the New York Federal Reserve , a sign of distress in the auto lending industry. At a time when the unemployment rate (now at 4.1%) is better than it has been in over 17 years, U.S. consumers should […]

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Consumer Credit Debt Grows at Fastest Pace in 12 Months

Nov 8th, 2017 @ 6:40 PM by Amber Nelson

U.S. consumer borrowing jumped up in September, according to data from the Federal Reserve, fueled by a surge in auto sales and student loans. Total consumer credit debt rose $20.8 billion in September, or at a 6.6% annualized rate to $3.79 trillion in all. That is the fastest pace since November 2016. September’s growth exceeded […]

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Federal Reserve Leaves Rates Alone Buts Plans to Sell Off Bonds

Sep 27th, 2017 @ 12:36 PM by Amber Nelson

The U.S. central bank declined to raise its target interest rate last week, but it will start selling off its massive portfolio of bonds in October. The Federal Reserve left its federal funds rate – which affects everything from mortgage rates to car loan rates to food prices – in the range of 1 percent to […]

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Deep-Subprime Auto Loan Delinquency Rates Hit Pre-Recession Levels

Sep 6th, 2017 @ 3:21 PM by Amber Nelson

Auto-loan borrowers with the worst credit are falling behind on their payments at a rate not seen in a decade, according to data from credit reporting agency Equifax. Deep-subprime borrowers, as they are called in the industry, have been defaulting on their auto loans at alarming rates. “Performance of recent deep subprime vintages is awful,” […]

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