More extended loans approved for both new and used vehicles
Lenders, especially credit unions, are approving more loans of 73 to 84 months, some of them for used cars more than five years old. The trend, which has increased considerably in the past eight years, was tracked by Experian and reported by Automotive News.
In the first quarater of 2009, just 11.7 percent of new-vehicle loans stretched six to seven years. By January and February 2017, that percentage had jumped to 33.8 percent. Longer loan terms are being approved for used cars, too. They are mostly newer models, but not exclusively, as 10 percent of MY 2010 used vehicles are financed for 73 to 84 months, said Experianês Karl Kruppa.Download Bulletin PDF