More Car Buyers Dependent on Loans
Sept. 3, 2013—Car buyers are more dependent on loans to purchase a vehicle than ever before, according to reports by Experian Automotive and Equifax.
Experian Automotive found that 84.5 percent of consumers who acquired a new vehicle in the second quarter of 2013 obtained either a loan or a lease to fund the purchase, marking the highest level since tracking began in 2006.
According to Equifax, the total number of new loans acquired from January to May of this year was 9.9 million, an eight-year high and an increase of nearly 12 percent from 2012.
The recession led many drivers to delay the purchase of a new car and with relaxed lending standards and more accessible loans, drivers are now looking to replace their old cars.
“This is good news for the auto industry, but it's also good for consumers because this, combined with the reduction we have seen in delinquencies, shows that they are feeling more confident in their ability to take on more debt and pay it off in a timely manner,” Melinda Zabritski, senior director of automotive credit for Experian Automotive, said in a statement.