Data shows a decline in average auto loan amounts: What it means for dealers – Melinda Zabritski | Experian
Experian has released new data showing that the average loan amount for both new and used vehicles decreased in the third quarter of 2023. In the latest episode of CBT Now, we delve deeper into Experian’s Q3 State of the Automotive Finance Market Report to learn more. Melinda Zabritski, Senior Director of Automotive Financial Solutions at Experian, joins us to further elaborate on the matter.
Experian’s market report indicates that the market is continuing to stabilize, considering that from Q3 2021 to Q3 2022, new vehicle loan amounts increased by $3,698, and used vehicle loan amounts increased by $2,379.
Key Takeaways:
1. Zabritski says the most prominent finding of the report was the decrease in loan amounts, following what Experian saw for the used loan amounts during Q2. Additionally, Zabritski claims, “Payments remain high from where they were last year, but new car payments have steadily fallen throughout the year.”
2. The report also continues to show consumers opting for shorter loan terms, with credit unions maintaining the largest share for used car lending. Moreover, credit unions have served a lot of interest in short-term loans driven by higher interest rates.