Auto loans are getting harder to get approved for, and as a result, the process has changed a little. People are hanging onto their current vehicles longer, since they are afraid to make any big purchases in an uncertain economy. Also, to get the monthly payment they want, more buyers are increasing their down payments.
Power Information Network reports that down payments as a percentage of the transaction price have risen to almost 19 percent in the third quarter of this year, which is the highest over the past seven quarters.
Sub Prime Auto Finance News reports that the amount financed, in addition to the loan-to-cost ratio, have lessened to the lowest levels witnessed over the past seven quarters as well.
3Q 2008: 18.97 percent
2Q: 17.45 percent
1Q: 17.44 percent
3Q 2007: 17.24 percent
Trade-in Vehicle Age:
3Q 2007: 5.5