In the past month for a new car Americans gave an average of 36 902 dollars, 5 $ 468 more than the average indicators 2013 year – 31 $ 434. Data provided Edmunds is a company engaged in the research of the automotive industry and guide to online shopping.
Exchange for a fee or hire purchase may reduce the price of the vehicle, the improvement is obvious. With the average price growth from 2013 year 17% cost of cars increased by 21.8%.
As stated by Matt Jones, senior Advisor to the Edmunds consumer issues, this helps to ensure that more consumers piling on more debt when buying a new car.
Primarily to price increases affected the development of technology and improved security features. In addition, buyers are increasingly refuse from the cheap segment sedans and other smaller vehicles, choosing to replace expensive SUVs and pickups. So, the car is not luxury costs an average of 25 US $ 200, while the SUVs are rated at 34 $ 400, and the pickups – 47 $ 400.
In addition, 33% of consumers, before completely repay the existing loan, go back to the dealership. The existing balance of the old loan can be tied to the loan on a new car.
The average of such negative capital 038 5 dollars. Six years ago, this service was used by 25.8% of buyers, while the figure was an average of 3 988 USD.
Increased the cost of credit and higher interest rates. If you apply the current average interest rate of 6.03% to the average amount of 32 824 dollars, you get 5 278 dollars per cent for a loan of 60 months, with monthly payment will be 635 dollars, and the total cost of financing 38 $ 102
Six years ago the average annual loans on new cars was 4.1%. At that time the average amount of the loan at 26 940 U.S. dollars, the borrower would have paid 29 841 dollars with monthly payment for 497 dollars.
Such overpayments often “eat” the family budget, so consumers stretch the loans in time. As of June, the average duration of a loan was close to 70 months – almost 6 years.
As a rule, the longer the loan term, the higher the interest rate, which also increases the total cost of the car. But despite the rise in price of cars and higher interest rates, recent data from the Federal reserve Bank of new York indicate that the share of overdue loans 90 days or more in the first quarter of 2019, the year was only 2.36 per cent. This rate slowly increases from 2012-th year.
However, at 2.36% is 7 million Americans who at the end of 2018 delayed pay in loans. And it’s a million more than at the end of 2010, when the economy was still recovering from the global crisis.