Auto financing, affordable credit helps buyers find great deals
Posted on Monday, June 2, 2014 at 10:23:09 AM
The spring auto buying season is heating up, and the past few months have resulted in strong sales totals and an increase in potential vehicle shoppers across the country.
According to Edmunds.com, more than 1.5 million new cars and trucks are expected to be sold in May, and this surging total is thanks to great credit and affordable auto financing.
"Credit conditions are making it easier to buy or lease a new car," said Jessica Caldwell, senior analyst for Edmunds.com. "Shoppers are opting for longer terms at lower interest rates. In other words, they're able to afford more expensive cars by keeping their monthly payments at or near what they're used to paying."
For example, Experian Automotive reported that the average auto financing loan term has continued to climb over the first quarter of 2014. The new average is now 66 months, the highest level noted since Experian began tracking this data. In addition, many buyers are also opting for loans as long as 84 months, with more than 24 percent of all new vehicles loans at least 73 months long. The average amount financed has also increased during the first three months of this year.