According to a TransUnion report, 2014 will be a year of increases in both auto loan lending and payment delinquencies. The average automotive debt per borrower is expected to increase from a 2013 figure of $16,942 to a 2014 figure of $17,966. Auto loans that are 60 days or more past due are expected to increase from 1.1 to 1.19 percent. However, this is still below the delinquency peak of 1.59 percent in Q4 2008. The report also highlighted how auto loan lending has been on a positive trend since Q4 2010.
Auto Loans News
Jan, 6, 2014
The CFPB is gearing up to change lending rules for auto loan lenders in 2014. The Bureau alleges that dealer reserve, which is a kickback dealerships receive for charging consumer’s higher interest rates on auto loans, is little more than a ripoff to consumers. In place of this, the CFPB wants to create a flat fee policy that would replace dealer reserve and also prevent lending discrimination. Senator Elizabeth Warren (D-MA) is one of the strongest voices calling for auto loan rule changes, having stated in the past that auto loan borrowers are tricked out of billions of dollars each year.
Dec, 10, 2013
According to a recent Experian report, the nation’s auto loan balance has reached a new peak of $782.9 billion. This is an increase of $103 billion from 2012. This increase is music to lenders’ ears, but it also shows that dealers have reached new record sales. With consumers once again eager to purchase vehicles, even if they have to borrow car loans to do so, America just may be finally out of the slow recovery that has been burdening the economy since the recession. Gary Miller, Business Head of car loan lender LightStream, said that the car loan market only grew because auto sales were high.
Nov, 18, 2013
The total amount of auto loan debt reached historic highs this fiscal quarter according to a report by the Federal Reserve Bank of New York. The findings stated that during Q3 2013, total debt for auto loans increased $31 billion, reaching a $845 billion high. Auto loan debt increased nearly as much as student loan debt, which added $33 billion to a total outstanding debt balance of $1.03 trillion.
Oct, 21, 2013
The Secretary of Defense and the Defense Department are pondering an update to the Military Lending Act in the wake of the lending industry’s growth and the increased availability of financial products, such as auto loans, installment loans and car title loans. While the Department of Defense has not officially commented on whether it will change the MLA, which was created nearly ten years ago in 2006, the fact that predatory lending remains a threat to members of the military means that looming changes are worth considering.
Oct, 15, 2013
As younger generations continue to struggle amid rising debt and low employment, experts say that the Baby Boomer generation has more car buying power and easier access to car loans. Baby Boomers have a financial edge over younger generations since they are more likely to be higher educated, lacking debt and advanced in their careers. The latter specifically means they are able to earn sizable incomes, as opposed to younger generations who may have to work multiple low paying jobs amid the recovering economy.
Oct, 11, 2013
Tesla, the technological innovator behind the newest electric automobiles, has announced that it will be competing with Google by developing and selling driverless cars. The car company has also announced that it will be offering its driverless vehicles in three years, which is far sooner than many experts predict driverless cars will be on America’s roads. While technology experts applaud environmentally friendly technology and innovation, they recognize that Tesla and Google will not be alone in the driverless car market.
Aug, 23, 2013
American car culture might be in trouble. Millennials just don’t share the car enthusiasm of previous generations. Generation Y neither cares to borrow car loans nor does it think cars are a necessity for either their professional or social lives that are increasingly being defined by online connectivity. Experts and Millennials shared with loans.org why this generation doesn’t borrow auto loans to buy cars. A Millennial Makes a Point
Aug, 21, 2013
Long distance ground mass transit systems have never been America’s forte. The age of the trains are long gone, along with the plumes of coal smoke. It certainly isn’t America’s fault though. After all, the United States is relatively new compared to the older countries of Europe and Asia, who seem to love building ever faster and efficient modes of public transportation, like maglev trains. One entrepreneur wants to do more than just bring high-speed transportation to America. He, and the state of California, want to bring something entirely new and innovative to market.
Aug, 14, 2013
Subprime lending is growing according to two industry reports. Studies by Experian Automotive and the Federal Reserve Bank of New York found that auto loans are being repaid more, despite being given to an increasing number of subprime borrowers.