Average New-Car Loan Climbs to $26,719 as Sales Accelerate

Average New-Car Loan Climbs to $26,719 as Sales AccelerateFueled by easier credit terms, Black Friday promotions and several new models, U.S. auto sales in November recorded their best best pace since 2007, with an annual selling rate of 16.4 million.
That figure sped past the 15.3 million rate recorded in November of one year ago, according to Autodata. It’s also the fastest annualized pace since 16.8 million in sales in February 2007.
The healthy sales figures were propelled by lenders offering lower interest rates on auto loans with longer pay-back terms. Additionally, more borrowers with weaker credit are being approved for loans.
The average loan on a new car climbed to $26,719 in the third quarter, up by $756 from a year earlier, and the most in at least five years, according to data from Experian Plc.
However, average monthly payments on new car loans rose only $6 to $458. Banks and finance companies offered lower rates and more time to repay loans, keeping monthly payments relatively low.
The average interest rate fell to 4.27 percent from 4.53 percent a year earlier and the average loan term stretched one more month to five years and five months, according to Experian.
Party because of the easing of credit terms, sales of all new vehicles by all automakers rose 8.9 percent from one year ago in November, and 3.1 percent from October. If you are thinking about joining the masses in buying a new vehicle then make sure you check out the current prices of the vehicle that you want to make sure you aren’t paying more than you need to. You can click here to see current prices. If you are taking out an auto loan to fund it, this will allow you to get the best deal possible and therefore get a smaller loan.
Here is a quick rundown on sales figures from the big three:
General Motors reported a sales jump of 14 percent in November, to 212,060, for the automaker’s best November in six years. Robust sales were bolstered by a redesigned Chevrolet Impala, an updated Chevy Malibu and remade full-size Chevy and GMC pickups.
Claiming the best November since 2004, Ford Motor’s sales rose 7.2 percent to 190,449. Sales of the Fusion sedan soared 51 percent and its F-series trucks hit 60,000 sales for the seventh consecutive month.
Chrysler Group
Propelled by its all-new, long-delayed Cherokee SUV (10,169 sales), Chrysler said November new-vehicle sales were up 16 percent, its best November since 2007. It was the automaker’s 44th consecutive month of sales gains.

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