The first factor to consider is the motivation behind the purchase. Keeping an Existing Automobile Instead of Purchasing a New One Source: Experian Q2 2018 State of the Automotive Finance Market Americans have over $1 trillion in motor vehicle credit outstanding.The following table from Experian shows how much people with various credit ratings typically are charged for loans. The average auto loan hit a record of $31,455 in the first quarter of 2018, with the average used car loan running $19,708.

After all, few people have the resources or options to upgrade their vehicle often. Most drivers intend to own the car for a long while.

For most people this is a major investment, second only to the purchase of a home. When an individual buys a car, they are typically buying the transportation they will rely on for years to come. Things to Consider When Shopping for a Vehicle If our site helped you save time or money, please get your accessories like cell phone chargers, mounts, radar detectors and other such goodies from through our affiliate link to help support our site. You can often save thousands of dollars by getting a quote from a trusted financial institution instead of going with the hard sell financing you will get at an auto dealership. Before you sign a loan agreement with a dealership you should contact a community credit union or bank and see how they compare. Source: Experian 2020 Q1 data, published on August 16, 2020Īcross the industry, on average automotive dealers make more money selling loans at inflated rates than they make from selling cars. Source: Experian 2022 Q2 data, published in August of 2022įor historical comparison, here is what the data looked like in Q1 of 2020 as the COVID-19 crisis spread across the United States. We publish an auto lender review guide to help buyers see current rates from top nationwide lenders.įor your convenience, here is data on what rates looked like across Q2 of 2022.

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