Economic recovery leads to auto loans increase

According to a neutral auto loan comparison site, the number of consumers making inquiries about vehicle financing is rising. AutoLoans.com recorded a higher number of visitors in April of 2011 than any other April in its history, which it attributes to the recovering economy. "(The economy) has made significant improvements this year (and) lenders have become more generous with credit card funds and non-revolving loans like car loans," said AutoLoans.com spokesman Mick Ronson. "In response, buyers have become more willing to borrow funds to purchase a new car, and they are doing so at a faster pace than we’ve seen since before the recession hit." TrueCar.com - another auto loan comparison site - reported similar findings in a recent report, which estimated that the current average transaction price for light vehicles in the U.S. was $29,583 in April 2011, up $229 from the previous April. According to Jesse Toprak, vice president of industry trends and insights for TrueCar, the transaction price increase was due to incentive reduction, lower discounts from dealers and an increased consumer preference for better-equipped vehicles.