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ENGLEWOOD, CO., Aug. 15, 2022 (GLOBE NEWSWIRE) — iLending, a national leader in automotive refinancing, is pleased to announce our first report on the state of the auto loan refinancing industry. This new offering is published quarterly and is based on our internal data combined with industry and consumer information. The intent of the publication is to provide meaningful insights for those interested in the auto loan refinance market, as well as consumers considering refinancing their existing car.
The first car loan was created in 1919, and a lot has changed in the last 102 years when it comes to car financing. according to a Experian Report 2022 focused on auto financing in Q1: the average new car loan amount was $39,540, the average new car payment was $648 per month, and the average new car loan term was about 70 months (nearly six years).
While these are purely average figures, a recent story in the Wall Street Journal reported that nearly 13% of new car buyers make at least a $1,000 monthly payment. That’s nearly double what it was a year ago, when about 7% of new auto loans had such high payments. In addition, many of these loans have extended terms, often in excess of seven years! For many people, these long-term payments can be crippling.
Rising interest rates were also in the news in 2022. However, these increases have little impact on refinancing a car loan compared to a home mortgage. Auto loans are much shorter term loans, typically 5-7 years compared to 30 years. In addition, the total amount paid on auto loans is much lower than a home mortgage since autos cost significantly less than a home. Therefore, the additional interest accrued over the life of your refinanced car loan is much less than the additional interest accrued on a mortgage.
Average retail used car prices ended 2021 at record highs and these high levels will continue into 2022. This surge is driving a…
Read on GNW: iLending Industry Insights – Auto/Car Loan Status