Car buyers opting for longer loans in 2017

Car buyers opting for longer loans in 2017

Data shows loan duration growing

A hunger for larger and more expensive cars is being named as the main drivers in a trend of longer car loans in the U.S.

Industry analysts, Edmunds, found the average auto loan length reached an all-time high of 69.3 months in June — up 6.8% from five years ago.

Buyers are also borrowing more money to get their new set of wheels.

The average amount buyers financed hit $30,945 (up $631 from May).

While the highest monthly payments now average $517 (up from $510 in May).

“Stretching out loan terms to secure a monthly payment they’re comfortable with is becoming buyers’ go-to way to get the cars they want, equipped the way they want them,” said Edmunds Jessica Caldwell.

“It’s financially risky, leaving borrowers exposed to being upside down on their vehicles for a large chunk of their loans,

“But it’s also a sign that consumers are still confident enough in the economy to spend more on their vehicles and commit to paying for them longer.”

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