By on July 6, 2017

Chevrolet Silverado purchase GM dealer - Image: GMALG says new vehicle prices averaged $32,900 in June 2017, up 2 percent from last year and a record high for the month of June.

Yet month after month, for six consecutive months to begin 2017, automakers are witnessing fewer and fewer buyers walking into dealers after sales shot to record levels in calendar year 2016.

Incentives, at $3,550 per car, are an effective lure. But that doesn’t change the fact that buyers are paying, on average, $33,000 and borrowing, according to Edmunds, $31,000 in order to finance a purchase.

How do car buyers afford the highest prices on record? By stretching the payment period to the longest terms ever: 69.3 months in June, Edmunds says. (Read More…)

By on May 31, 2017

Bright colors and lowered prices try to attract customers to a California used car lot, Image: Bike Tourist/Bigstock.com

The low, low monthly payments offered by spreading the cost of a new or used vehicle across a vast gulf of time is certainly an attractive one, even though the practice is fraught with hidden danger.

For U.S. car buyers, it has also become a very popular one, with data showing just how many people have decided to embrace a 73- to 84-month payment plan. Not only are their spending habits changing, they’re also changing their lender. (Read More…)

By on September 21, 2016

2016 Honda Civic sedan

It’s long past time to put the bike (myth) away.

Outside of certain urban centers, Millennials are cuckoo for cars. Jobs and families and lifestyles, you see. As more members of the youngest car buying cohort show up at dealers looking to sign on the dotted line, their method of payment is evolving, too. (Read More…)

By on June 3, 2015

Roth Chevrolet Circa June 2013

As loan terms continue to stretch further into the future, spending on new-car purchases hit a new all-time high in May 2015.

(Read More…)

By on March 20, 2015

Signing his life and wallet away for the next six or so years with a long-term auto loan agreement

In the past, six-year auto loans were few and far between. Today, more of those loans are being issued, with seven- and eight-year loans gaining popularity.

(Read More…)

By on April 10, 2014

01-cadillac-dealership4

As more consumers trade-in their old vehicles for a newer model, a growing number of consumers are owing more on their trade-in than their vehicle’s actual worth.

(Read More…)

Recent Comments

  • Caboose: Slightly off-topic, but didn’t the president vow to issue an executive order directing the EPA to...
  • Arthur Dailey: Read the works of David Foot who is credited with inventing the concept of economics based on...
  • Cactuar: Who can argue against DRL’s when seeing this photo?
  • Toad: …or Chevrolet SSR redux. For the that matter the El Camino or Ranchero. Every past attempt to sell a...
  • Clueless Economist: JohnTaurus gets it. Too bad the writer doesn’t. There is a reason 4 cylinder Ranger owners...

New Car Research

Get a Free Dealer Quote

Staff