Consumers in the United States respond to the rising cost of new cars by going deeper into debt. The average loan for a new vehicle is at a record-high of $40,290 during the second quarter, according to Experian, the credit monitoring company.
The American company released its latest report on the automotive finance market on Thursday, 25 August, citing that the average amount borrowed had risen up to 13.2 percent. The average monthly payment for a new vehicle loan went up to $667 in the second quarter, which is a 15 percent increase from the previous year.
However, the duration of the average new vehicle loan stayed consistent in the second quarter of 2022 as opposed to a year ago at just a little more than 69 months.
It has been observed that used car buyers are also borrowing more. The average used car vehicle loan rose to $28,534, up 18.7 percent with an average monthly payment of $515, up 17 percent, as per a report by the CNN.