Posts Tagged ‘borrowing money for a car’

Automotive Consumer Debt Continues to Rise

Despite selling fewer vehicles, loan originations rose last quarter.

by on Feb.14, 2018

Americans borrowed more money to buy new vehicles in 2017 despite the fact that they bought fewer vehicles.

The amount of money Americans borrowed to finance the purchase of new vehicles increased again during the fourth quarter of 2017, according to new figures published by the Federal Reserve Bank of New York.

The Federal Reserve Bank of NY said the value of auto loans approved during the fourth quarter increased by $8 billion over the same period in 2016 when sales were of vehicles were relatively stronger. In addition, the value of automotive loans or debts held by lenders increased in 2017 by $64 billion to $1.22 trillion even though overall new vehicle sales dropped last year.

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The percentage of delinquent auto loans also dropped in the fourth quarter to 2.3% from 2.4%, the report noted. (more…)