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Loans for new and used cars hit a new record in the third quarter, as consumers continue to opt for cars with newer technology and higher price tags, Bloomberg reports.
Why it matters: Auto debt in the U.S. continues to grow and topped $1.32 trillion in the third quarter — up $50 billion from last year, Bloomberg notes. The number of 90-day car loan delinquencies also increased from 4.27% last year to 4.71%.
By the numbers, per Bloomberg: The average monthly payment for a new car or truck is $550.
- The average term of car loans has elongated to 69.28 months.
- Consumers with good credit now make up 51.24% of used car financing, which is the highest percentage in 10 years.