Car finance payment industry surveys reveal that average

Industry surveys reveal that average "car finance payment" terms have extended from 65 to 72 months, raising concerns about long-term credit quality. Equity markets may price in stronger risks for lenders over the back half of In other words, the cost of holding onto these cars is greater than the loss from selling them. Average rates are currently high. The benchmark rate, which is the rate banks charge to lend money to other banks, declined to 4.25-4.5 percent in December. This affects rates on consumer products like car loans, but although there was a significant change in the fed rate over 2024, interest rates have not seen a decrease. Equity research teams highlight that the 30–60 day past due category in "car finance payment" portfolios rose 0.4% month-on-month in May