Rising Auto Loan Payments Exceeding $1,000 Become Commonplace
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: CNBC
- Payment Trends: Experian Automotive's analysis reveals that nearly 19% of new vehicle loans in Q1 have monthly payments exceeding $1,000, up from 17.4% year-over-year, indicating a growing consumer adaptation to high loan amounts.
- Non-Luxury Dominance: The data shows that almost 74% of auto loans with payments over $1,000 are for non-luxury models, primarily popular pickups like the Ford F-150, Chevrolet Silverado 1500, and Ram 1500, reflecting sustained demand for higher-priced vehicles.
- Record Loan Amounts: The average amount borrowed for auto loans has reached an all-time high of $43,952, with average monthly payments climbing to $770, indicating a robust auto market despite the pressures of high payments.
- Delinquency Rates: Although the percentage of loans more than 30 days late has risen to 2%, overall delinquency rates remain below 2018 levels, suggesting market stability, particularly in the subprime sector where lower credit scores correlate with higher default risks.
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Analyst Views on F
Wall Street analysts forecast F stock price to fall
14 Analyst Rating
3 Buy
10 Hold
1 Sell
Hold
Current: 16.650
Low
11.00
Averages
13.65
High
16.00
Current: 16.650
Low
11.00
Averages
13.65
High
16.00
About F
Ford Motor Company develops and delivers Ford trucks, sport utility vehicles, commercial vans and cars, and Lincoln luxury vehicles, along with connected services, including BlueCruise (ADAS) and security. The Company's segments include Ford Blue, Ford Model e, Ford Pro, and Ford Credit. The Ford Blue segment primarily includes the sale of Ford and Lincoln internal combustion engine (ICE) and hybrid vehicles, service parts, accessories, and digital services for retail customers. The Ford Model e segment primarily includes the sale of its electric vehicles, service parts, accessories, and digital services for retail customers. The Ford Pro segment primarily includes the sale of Ford and Lincoln vehicles, service parts, accessories, and services for commercial, government, and rental customers. The Ford Credit segment consists of the Ford Credit business on a consolidated basis, which is primarily vehicle-related financing and leasing activities. Its vehicle brands are Ford and Lincoln.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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