Aug 25, 2013 Philip Burgess
Though the U.S. automotive industry experienced a massive fallout during the harshest years of the recession, improved consumer spending and employment opportunities have led to a resurgence in financing. Now, auto industry financing is beginning to reach levels that had not been seen since before the recession, further illustrating the recovering economic situation in the United States.
The average auto loan rate across the country remains highly preferable for buyers, while American manufacturers are consistently releasing new and improved cars and trucks. The time seems to be ripe for new and used car purchases, especially with the wide variety of traditional and alternative lending products currently available to consumers.
Which states rank highest?
GoBankingRates.com recently released the results of a study which sought to discover the states with the highest and lowest auto loan rates. According to the report, Rhode Island, Connecticut and New Jersey ended up having the most expensive loan rates for automotive purchases, with 5.11 percent, 4.82 percent and 4.47 percent, respectively.
On the other hand, Michigan, Oregon, Alaska, Utah, New Hampshire, South Carolina, North Carolina, Washington, Oklahoma and Vermont had the most preferable average loan rates. The firm explained that the national average is 3.65 percent for state-based interest rates, which is still a fairly low and preferable price to pay.
Automotive News recently reported that the latest figures indicate auto loan delinquencies have reached record lows, and new lending disbursements continue to grow across the United States. These statistics have led many dealers and lenders to become more optimistic about the road ahead, with credit availability and sales increasing substantially since the beginning of the economic recovery several years ago.
The source explained that virtually every category of auto industry financing is showing positive signs, including a consistently rising average loan amount among buyers. While the same rate of consumer are paying off their debts at a similar pace to last year, the payments are significantly higher, which indicates that the economic recovery is playing a big role in the industry's resurgence.
According to the news provider, all of the current levels of delinquencies, rates and auto loan disbursements further solidify the idea that consumer confidence is on the mend.
Alternative lenders, automotive dealers and other types of financiers should consider offering competitive rates and deals on loans to capitalize on increased consumer confidence and spending.