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Average auto loan term creeps higher: Fed

November 17, 2010

The average maturity on vehicle loans increased slightly to 61.1 months in May, compared to 57.8 months in April and 58.3 months in March, the Federal Reserve announced last week. 

Reserve statistics also indicate that the average amount financed for a new car is increasing over time. In May, the median came in at $27,163, compared to $27,013 in April and $26,998 in March.

 

The average interest rate on a 48-month term auto loan from commercial banks was 7.92 percent. The closest available comparison was in early 2007, when the figure was 7.74 percent. Figures were not available for April or March. 

The median rate of new-vehicle loans at auto finance companies, according to the Fed, was 4.88 percent, down slightly from 5.04 percent in April but still up from 3.89 percent in March.

 

Revolving credit grew at an annual rate of 9.75 percent, and non-revolving credit was up 4.5 percent on an annual basis.

 

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