Auto lending on the rise in third quarter
Posted on Wednesday, November 28, 2012 at 4:07:06 PM
Following the end of the recession, many consumers changed the way they handle their finances. As a result, activity among auto financing declined significantly as Americans looked for ways to cut unnecessary spending.
However, as the economy starts to regain its footing, auto loan activity surged in the third quarter this year, according to a report from the Federal Reserve Bank of New York.
During the three-month period, the dollar volume of new car loans totaled $18 billion, marking six consecutive quarters of increases, the report said. Additionally, consumers were also more willing to take on mortgages and credit card debt.
"The increase in mortgage originations, auto loans and credit card balances suggests that consumers are slowly gaining confidence in their financial position," said New York Federal Reserve senior economist Donghoon Lee.
When it comes to purchasing a vehicle, many consumers still look for ways to save money. One way to do with is to opt for a used car. This alternative can still offer the same performance as a new vehicle, but on a budget.
Borrowers considering the purchase of used car should consider the services of Home Loan Investment Bank to secure used car financing to complete the transaction.