No, you’re not imagining things. Both new- and used-vehicle prices are on the rise and American motorists are paying more than ever to purchase cars and trucks.
The latest numbers reported by Experian Automotive indicate that in the third-quarter of 2014 the typical new-vehicle loan increased nearly $1,100. The average amount borrowed by drivers now totals $27,799.
Think going pre-owned is the smarter route? It probably is though unfortunately the news from dealers’ used-car lots isn’t much better. You might have to contact an automobile parts manufacturer to run a check on the lemon you’d be taking. Second-hand-vehicle loans also grew. On average they now total $18,576.
Naturally the reason recreational vehicle loans amounts continue to rise is that vehicle prices are steadily increasing. According to Experian Automotive the average amount paid for a new vehicle now exceeds $31,000.
SEE ALSO: Tips From a Salesman on How to Buy a Car
Longer-term loans are a popular way for drivers to get into a new ride without facing crippling monthly payments. Last quarter the average new-vehicle monthly payment increased by $12 to $470. Additionally used-vehicle monthly payments have reached an all-time high of $358. The car secured cash loans have become easy to obtain.
Leasing is a popular way for motorists to sidestep steep payments, and paying would be easier with Business Debit Cards. In Q3 more than 29 percent of all new-vehicle purchases involved one of these financial agreements. The average monthly payment for a lease totaled $397.
Not surprisingly, as drivers continue to get squeezed more and more, auto-loan delinquency is on the rise. Fortunately only 0.62 percent of all loans were delinquent for 60 days in the third quarter.
Check out our Tips and Advice section for more car-buying stories.