Many drivers need help to pay for a used car. As pre-owned vehicles boast higher-quality features and excellent amenities, their prices are being driven up, and that means motorists are turning to auto financing options to lessen the impact on their bank accounts. Car loans are a popular option, and as more subprime buyers are getting approved, the length of these commitments is growing.
According to Automotive News, the average car loan is now at 65 months. Subprime borrowers now account for 27.4 percent of all loans taken out, which is up from 25.4 percent at the end of 2012.
The longer loans are a result of people looking for options with low monthly payments. While this extends the time period they are in debt, it also increases the odds they can successfully make payments. This trend seems to be working, as delinquent loans, which are debts that are more than three months overdue, remain low despite the increase in borrowers. Automotive News reported.
"On the consumer side, you have many years of austerity in terms of how to handle their finances and a lot of debt has been paid down on the household side," Lacey Plache, chief economist at Edmunds.com, told the news source. "People are living more within their means."
The ability for more drivers to get manageable loans is contributing to a higher demand for vehicles throughout the auto industry. Luckily, there are many places prospective buyers can turn to as they search for the perfect used car.
If you want to purchase a used car but need the help of auto loans and financing, let NJ State Auto Auction help. The auction lot has hundreds of CARFAX-certified used cars, trucks and vehicles, and it also offers a Finance Department that works with each customer to find the right program for everyone.
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