Experian Automotive today announced that the difference between the average monthly payments for new and used vehicles reached its highest level on record. According to the latest State of the Automotive Finance Market report, the average monthly payment for a new vehicle in the second quarter of 2015 was $483, while the used was $361 — widening the gap between the two to $122, the largest margin since Experian began publicly reporting the data in 2008. Furthermore, the difference between the total loan amounts for new and used vehicles also increased significantly. On average, consumers financed $28,524 for a new vehicle and $18,671 for used — a difference of $9,853.
“As the price of new vehicles continues to rise, and the gap between monthly payments for new and used vehicles widens, we see more and more consumers looking for ways to keep their vehicle payments affordable,” said Melinda Zabritski, Experian’s senior director of automotive finance. “This could be especially true for consumers who have the financial ability to pursue a new vehicle but may have sticker shock at the rising prices and don’t want the accompanying high monthly payments.”
Findings from the report also show that consumers are continuing to extend their loan terms as a way to keep payments down, especially for used vehicles. The percentage of used vehicles financed for 73 to 84 months increased by 14.8 percent from Q2 2014 to reach 16.1 percent — the highest percentage on record. Additionally, new vehicles financed for the same term length climbed 19.7 percent from the previous year to reach 28.8 percent.