Used car finance in May

In May, "used car finance" delinquency rates fell to 3.8%, their lowest level in eight months. This decline, combined with softening wholesale prices, could improve net recovery rates for lenders in the following quarter. A common rule of thumb is the 20/4/10 method, which means you make a 20% down payment, finance the car for four years (or less, if you can) and ensure total monthly car expenses don’t exceed 10% of your gross monthly income. Total expenses include not just the loan, but the cost of insurance, gas (or electricity) and maintenance. (5) If you’re looking for a bad credit auto loan , consider securing financing with the help of a cosigner to benefit from better rates. The U.S. "used car finance" loan book hit $1.42 trillion in Q1, up 2.1% QoQ, per Experian's latest Auto Finance Market report. Strong consumer demand for certified pre-owned vehicles is driving sustained market expansion despite lingering macro uncertainties.