{"id":129326,"date":"2018-08-30T17:04:07","date_gmt":"2018-08-30T21:04:07","guid":{"rendered":"http:\/\/www.thedetroitbureau.com\/?p=129326"},"modified":"2018-08-30T17:44:21","modified_gmt":"2018-08-30T21:44:21","slug":"car-buyers-paying-more-on-time-as-lenders-raise-risk-threshold","status":"publish","type":"post","link":"https:\/\/thedetroitbureau.com\/2018\/08\/car-buyers-paying-more-on-time-as-lenders-raise-risk-threshold\/","title":{"rendered":"Car Buyers Paying More, On Time as Lenders Raise Risk Threshold"},"content":{"rendered":"
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Experian reports that new cars are more expensive than ever with an average monthly car payment of $525.<\/figcaption><\/figure>\n

Americans are shelling out more than ever to buy new and used cars, on average, however, their also doing a better job of making those monthly loan payments on time, according to Experian.<\/p>\n

Experian\u2019s \u201cState of Automotive Finance\u201d report reveals that 30-day delinquencies dropped to 2.11% from 2.2% a year ago, while 60-day delinquencies dropped to 0.64% from 0.67% over the same time period.<\/p>\n

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Subscribe Now!<\/figcaption><\/figure>\n

“As we monitor the health of the automotive market, delinquencies are one of the most telling metrics. If this downward trend continues, it can be an encouraging sign,” said\u00a0Melinda Zabritski, Experian’s senior director of automotive financial solutions.<\/p>\n

“Moving forward, lenders will want to keep a close eye on car buyers’ payment performance. Understanding these trends and leveraging the power of data helps lenders make the right decisions when analyzing risk.”<\/p>\n

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Loan delinquencies have dropped on new and used vehicles, Experian notes.<\/figcaption><\/figure>\n

Although buyers are doing a better job of paying for what they bought, there are concerns about how much they\u2019re paying. The average new vehicle loan amounts jumped more than\u00a0$700\u00a0year-over-year to\u00a0$30,958\u00a0in Q2 2018, while used vehicle loan amounts increased\u00a0$520\u00a0to reach\u00a0$19,708, Experian noted.<\/p>\n

Unsurprisingly, new and used vehicle monthly payments hit record highs during the quarter, with the average new monthly payment increasing\u00a0$20\u00a0year-over-year to\u00a0$525, and the average used monthly payment increasing\u00a0$13\u00a0over the same time period, reaching\u00a0$378.<\/p>\n

The gap between the average new and used car payment widened during the same period to $147, which is the largest gap ever, showing that the plethora of three-year-old used cars available in the market is beginning to impact the value of used vehicles.<\/p>\n

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Additional findings:<\/p>\n