Auto lending makes up a significant portion of the U.S. credit market, but new data from MoneyAisle.com found that consumers are paying upwards of 200 percent on auto loans.
According to the study, consumers could save approximately $1,200 on their car loans by applying for them online. MoneyAisle found that consumers end up paying exorbitant markups when loans are not properly vetted. "Currently, more than 79 percent of auto financing happens through indirect channels like the dealer, who serves as an intermediary. MoneyAisle.com allows consumers to connect to direct channels like credit unions and banks," the company announced in a statement. Additionally, MoneyAisle's research found that markups can correlate to one's consumer credit score. Individuals with scores below 580 pay the least markup on average, totaling 135 percent. Meanwhile, consumers with credit scores between 700 and 739 pay the highest markup at 191 percent. According to the site, auto lending totals $850 billion in debt among American consumers - a higher total than the credit card industry.