Used car loans have been getting longer, according to Experian Automotive – loans of 61 to 84 months made up nearly half of used vehicle loans in the first quarter of this year. Loans in the 61 to 72 month rose 6% during that time, and loans in the 73 to 84 month range spiked up 23%. There was decline in loans with 60 months or less.
The loans are appealing to consumers but are something to watch. Tom Webb, chief economist at Manheim Consulting, thinks it’s a significant trend. Webb thinks it’s a bubble in the early stages of formation.
