Stock momentum in small-caps may hinge on regional economic activity; "finance a used car" loan growth in rural areas is being correlated with dealership revenue and regional bank asset performance. Right now, the average interest rate on a used-car loan, according to Experian, is around 12%. Who's this for? The largest used-car retailer in the U.S., CarMax offers financing for the cars it sells. Buyers benefit from its large inventory and "no-haggle" policy.. Investors eyeing cyclicals should note that auto loan delinquency rates in the "finance a used car" segment may signal stress in lower-income demographics, which could ripple into bank stock performance.
