Auto Facts
 
 

 

How times have changed
Posted on: 10/11/2018

Only a small number of buyers can remember the old days when the normal for car loans was 24 months.  Back then a large percentage of buyers only wanted 12 months or 18 months.  And under no circumstances did buyers consider trading a car before the final payment was made.

Now, with rare exceptions, its unheard of for a new-vehicle buyer to finance for only 24 months.  The normal is now 6 and 7 years.

Here are the percentages of new-vehicle loan originations by the term as reported by the Experian Q2 2018 State of the Automotive Finance Market report:     

Term (months)                                Percent

    49-60                                              19.4%

     61-72                                              40.2%

     73-84                                             32.0% 

     85-96                                                1.2%



Average rates & down payments on used vehicles
Posted on: 10/06/2018
The average used-car interest rate, down payments, rise in September

For borrowers, the average interest rate on a used-vehicle loan and the average monthly payment on a used-vehicle loan rose last month. To mitigate the increases, consumers boosted down payments, while loan lengths stayed relatively flat.
  Sept. 18 Sept. 17
Term (in months) 66.95 66.81
Monthly payment $401 $386
Amount financed $21,697 $21,380
APR 8.38 7.52
Down payment $2,657 $2,494

Source: Edmunds



Top 10 best-selling light vehicles
Posted on: 10/02/2018

The top 10 best-selling light vehicles in September and year-to-date as reported by Automotive News.

Top Selling Light Vehicles  
    Sept.     9 mos.
1 Ford F series 75,092   Ford F series 679,018
2 Ram pickup 51,856   Chevrolet Silverado 424,403
3 Chevrolet Silverado* 44,962   Ram pickup 375,583
4 Toyota RAV4 37,440   Toyota RAV4 319,147
5 Nissan Rogue 34,842   Nissan Rogue 309,979
6 Chevrolet Equinox* 30,983   Honda CR-V 277,621
7 Honda CR-V 30,587   Toyota Camry 262,887
8 Toyota Camry 27,640   Honda Civic 255,036
9 Honda Accord 25,357   Toyota Corolla 235,168
10 Honda Civic 24,806   Chevrolet Equinox 234,379
 


Top 10 Best-Selling Cars
Posted on: 10/02/2018

The top 10 best-selling cars in September and year-to-date as reported by Automotive News. 

Top Selling Cars  
    Sept.     9 mos.
1 Toyota Camry 27,640   Toyota Camry 262,887
2 Honda Accord 25,357   Honda Civic 255,036
3 Honda Civic 24,806   Toyota Corolla 235,168
4 Toyota Corolla 20,797   Honda Accord 215,299
5 Hyundai Elantra 19,923   Nissan Altima 166,599
6 Tesla Model 3* 18,000   Nissan Sentra 165,147
7 Nissan Sentra 16,795   Hyundai Elantra 148,879
8 Ford Fusion 15,878   Ford Fusion 124,964
9 Nissan Altima 11,867   Chevrolet Cruze 109,662
10 Chevrolet Cruze* 11,277   Chevrolet Malibu 107,458


Top 10 light-truck sales
Posted on: 10/02/2018

The top 10 best-selling light trucks in September and year-to-date as reported by Automotive News.

Top Selling Light Trucks  
    Sept.     9 mos.
1 Ford F series 75,092   Ford F series 679,018
2 Ram pickup 51,856   Chevrolet Silverado 424,403
3 Chevrolet Silverado* 44,962   Ram pickup 375,583
4 Toyota RAV4 37,440   Toyota RAV4 319,147
5 Nissan Rogue 34,842   Nissan Rogue 309,979
6 Chevrolet Equinox* 30,983   Honda CR-V 277,621
7 Honda CR-V 30,587   Chevrolet Equinox 234,379
8 Jeep Cherokee 23,836   Ford Escape 210,050
9 Toyota Tacoma 22,265   Ford Explorer 196,870
10 Toyota Highlander 21,986   Jeep Wrangler 190,951

* Estimate

 

 



All-time high
Posted on: 10/01/2018

Although new auto sales in August had a slight decrease (0.1%) from August 2017, one segment continued to dominate the market.  That segment, truck sales, accounted for 70.6% of the total market, which is an all-time high.     

As expected, the Ford F-series pickup was the best-selling auto followed by the Ram pickup.  The remaining eight of the top ten best-selling:  Toyota RAV4, Chevrolet Silverado, Honda CR-V, Nissan Rogue, Toyota Camry, Chevrolet Equinox, Honda Civic, and the Honda Accord.

J.D. Power Valuation Services reported “Automakers grew incentive spending once again in August, making it the 41st month in a row spending increased.  On average, according to Autodata, spending reached $3,784 per unit versus $3,746 per unit in August 2017.”

Since dealer inventory (day’s supply on hand) increased by 3 days, it will be interesting to see September sales results for sales and incentives.  



Negative Equity
Posted on: 09/30/2018

Negative equity, as defined in the dictionary is: Being or holding an asset that is worth less than its purchase price of the debt owed on it.  Commonly, negative equity is referred to as being upside down.

The record high for negative equity per vehicle was in January 2018.  August was the first month in 2018 that the average negative equity per vehicle fell below $5,000 according to Edmunds.

                                                      Aug. 2018      Aug. 2017

Average negative equity             $4,938           $5,086

Trade-ins with negative equity    30.9%            31.6%

There are solutions in controlling negative equity on a vehicle loan.  Such as discussing the trade-in value vs. amount owing with your loan officer prior to trading your current vehicle.      




 
 
 
 
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