The Latest Car Loan Quantity Statistics Explained
Average new-car loan in the US reached record $32,187 in 2020.
The statistic “Average new-car loan in the US reached a record $32,187 in 2020” represents the average amount of money borrowed for financing the purchase of a new car in the United States during the year 2020. This figure indicates the increasing cost of new cars and the tendency for consumers to take out larger loans to afford these purchases. The record-high amount also suggests that individuals are willing to stretch their budgets or take on more debt to acquire a new vehicle, which may have implications for their financial well-being and overall economic trends.
44% of Americans rely on an auto loan to finance a new car purchase.
This statistic indicates that nearly half of Americans use an auto loan to finance their new car purchases, highlighting the common practice of borrowing money to purchase vehicles. The reliance on auto loans suggests that a significant portion of the population may not have immediate access to enough funds to buy a car outright, or they prefer to spread the cost over time through loan repayments. This trend may reflect varying individual financial situations, credit availability, and preferences for managing personal finances. Additionally, it underscores the widespread use of loans as a crucial financial tool for facilitating major purchases like cars in the United States.
The average monthly payment for new car loans was $568 in 2020.
The statistic ‘The average monthly payment for new car loans was $568 in 2020’ represents the mean amount individuals paid each month for their new car loans during the year 2020. This average monthly payment of $568 provides a summary measure of the typical financial commitment for new car buyers in that year. It is important to note that this average includes all new car loan payments, ranging from lower to higher amounts, and can serve as a reference point for understanding the general magnitude of monthly loan obligations for new car purchases in 2020.
Car buyers borrow $34,635 on average for a used car as of 2020.
The statistic “Car buyers borrow $34,635 on average for a used car as of 2020” indicates the typical amount borrowed by individuals purchasing a used car in the year 2020. This average borrowing amount serves as a measure of the financial commitment buyers are willing to take on in order to acquire a used vehicle. The figure of $34,635 reflects the average loan amount and suggests that many buyers are utilizing financing options to afford their desired used cars. This statistic is important for understanding the financial behaviors and decisions of consumers in the automotive market, providing insights into the affordability and lending practices within the industry.
Auto loan debt is the third-highest category of household debt, after mortgages and student loans.
The statistic that auto loan debt is the third-highest category of household debt, after mortgages and student loans, indicates the significant financial burden and impact of car ownership on individuals and families. The high ranking of auto loan debt underscores the common practice of financing vehicles through loans, with many households carrying substantial debt to purchase or lease cars. This statistic reflects the overall trend of increasing consumer debt and the importance of transportation in modern society. Managing auto loan debt is crucial for households to maintain financial stability and avoid overleveraging themselves, especially given that cars are a necessary expense for many individuals for work, school, and daily living.
26.8% of American adults had an auto loan in 2020.
The statistic ‘26.8% of American adults had an auto loan in 2020’ represents the percentage of adults in the United States who had borrowed money to finance the purchase of a vehicle during the year 2020. This statistic indicates that a significant portion of the adult population in the country opted to take out auto loans to afford a car, which is a common practice as vehicles are often considered significant investments. The data suggests that a sizable segment of the American adult population relies on auto financing to acquire transportation, highlighting the importance of credit access and financial management among consumers.
Nearly one in five auto loans goes to borrowers with subprime or deep subprime credit.
This statistic indicates that a significant proportion of auto loans, specifically about 20%, are approved for borrowers with subprime or deep subprime credit scores. Subprime and deep subprime credit scores typically reflect a higher risk of default for lenders due to the borrowers’ history of missed payments, high levels of debt, or other credit issues. Despite the increased risk associated with lending to these borrowers, lenders are still willing to extend credit for auto loans, albeit often with higher interest rates to compensate for the added risk. This statistic highlights the accessibility of auto financing options for individuals with lower credit scores but also underscores the financial challenges and potential costs they may face in securing a car loan.
74.5% of consumers took out a loan to finance a new vehicle in the second quarter of 2020.
The statistic that 74.5% of consumers took out a loan to finance a new vehicle in the second quarter of 2020 indicates the prevalence of borrowing for car purchases during that period. This high percentage suggests that a large majority of consumers were unable or chose not to pay for a new vehicle outright, opting instead to obtain financing through loans. Factors such as economic conditions, interest rates, and individual financial situations likely influenced this trend. The statistic highlights the importance of access to credit for consumers to afford big-ticket purchases like cars and reflects the common practice of spreading out the cost of a new vehicle over time through loans.
Auto loan delinquency rates in the U.S. reached 4.71% in 2020.
The statistic that the auto loan delinquency rate in the United States reached 4.71% in 2020 represents the percentage of borrowers who are behind on their payments by a specified amount of time. A higher delinquency rate indicates a higher level of financial stress among borrowers and can be a concerning indicator of potential economic challenges. In the context of the auto industry, a higher delinquency rate can signal potential issues for lenders, as it may lead to increased loan defaults and losses. This statistic underscores the importance of monitoring economic trends and borrower behavior to assess the overall health of the auto loan market and the broader economy.
As of the first quarter of 2020, the average auto loan balance was $19,231.
The statistic that the average auto loan balance as of the first quarter of 2020 was $19,231 indicates the typical amount owed by individuals who have taken out auto loans during that time period. This figure represents the average across all borrowers, meaning that some individuals may owe more than this amount while others owe less. The auto loan balance is an important measure in understanding consumer debt and financial habits, as it can indicate how much individuals are borrowing to finance their vehicles and their ability to manage debt. Additionally, changes in the average auto loan balance over time can provide insights into trends in consumer spending, economic conditions, and lending practices.
Vehicles financed by companies made up 62% of vehicles financed in the U.S. in 2019.
In 2019, in the United States, companies financed 62% of the total vehicles that were financed during that year. This statistic indicates that a significant majority of vehicle financing transactions were carried out by companies rather than individual consumers. This insight suggests that a substantial portion of the vehicle financing market is driven by corporate entities, which could reflect widespread corporate fleet purchases or the financing of vehicles for commercial purposes. Understanding this breakdown of vehicle financing can provide valuable insights into the dynamics of the automotive industry and the role of businesses in shaping the market.
American lenders issued $671 billion in new auto loans in 2020.
The statistic states that American lenders issued a total of $671 billion in new auto loans in the year 2020. This indicates a substantial amount of lending activity in the auto loan market during that period. The significant value of $671 billion shows the high demand for auto loans among consumers in the United States and reflects the importance of auto financing for individuals making vehicle purchases. This statistic also suggests that there was robust economic activity in the automotive sector despite the challenges posed by the COVID-19 pandemic in 2020.
References
0. – https://www.www.cnet.com
1. – https://www.www.debt.org
2. – https://www.www.statista.com
3. – https://www.www.cnbc.com
4. – https://www.www.lendingtree.com
5. – https://www.www.forbes.com
6. – https://www.www.experian.com
7. – https://www.www.creditkarma.com
8. – https://www.www.nerdwallet.com
