New-vehicle loan terms in the 73- to 84-month range grew 15 percent, accounting for 16 percent of all new-car loans. Used-vehicle loans in the same segment grew 20 percent, making up 29 percent of used-car loans.
As loan terms grow, so does the amount of the transaction price that consumers are financing. The average amount financed for a new vehicle by consumers in the second quarter climbed 4 percent to $28,524. For used vehicles, average financing grew to $18,671, a 2.3 percent rise.
The average interest rate on a new-vehicle loan rose slightly to 4.8 percent from 4.6 percent a year earlier. Used-vehicle loan rates were higher at 9.1 percent, compared with 8.8 percent the year earlier.
Leasing inches up
At the same time, more than one in four consumers leased a vehicle during the quarter. Of all new-vehicle sales, 27 percent were leased, up from 26 percent in the second quarter of 2014.
Lease terms also grew, with the share of leases in the 37- to 48-month range growing 18 percent, accounting for 22 percent of all leases, which explains the decline in 25- to 36-month leases, Zabritski said. The share of leases with terms of 25 to 36 months fell to 67 percent, down from 70 percent a year earlier.
The average monthly payment for a new-vehicle lease dipped to $394, a 3.2 percent decrease from the year earlier.
“We see more and more consumers looking for ways to keep their vehicle payments affordable,” Zabritski said in the statement. “This could be especially true for consumers who have the financial ability to pursue a new vehicle but may have sticker shock at the rising prices and don’t want the accompanying high monthly payments.”