SCHAUMBERG, Ill. — Amid all the fear about rising interest rates, new vehicle loans dropped to their lowest point since 2008, according to a new report released Wednesday by Experian Automotive.
Interest rates for new vehicle loans dropped to 4.27%, the lowest point since Experian began publically reporting the data in 2008.
During the same period, the average amount financed for a new vehicle reached its highest point since 2008, coming in at $26,719, up from $25,963 in Q3 of 2012.
"The third quarter of 2013 proved to be a good time to purchase a new vehicle, particularly for consumers who buy based on their monthly payments," said Melinda Zabritski, senior director of automotive credit for Experian Automotive. "With loan rates at historic lows, car shoppers were able to take advantage and get a little more vehicle for their monthly payment."
Other highlights from the report:
- The average monthly payment during the period remained flat ($458) — just $6 higher than the average monthly payment in Q3 2012.
- Leasing continued to be a significant part of the vehicle finance mix, accounting for 27.22% of all new vehicle financing, up from 24.40% in Q3 2012, but down slightly from 27.64 in Q2 2013.
- Nonprime, subprime and deep subprime new vehicle loans rose slightly to 26.04% market share in Q3 2013, up from 24.84% in Q3 2012. For used vehicles, nonprime, subprime and deep subprime loans accounted for 54.95% market share in Q3 2013, up slightly from 54.43% in Q3 2012.
