#Accelerate

FLORIDA TODAY ❚ SATURDAY, JUNE 9, 2018 ❚ 5E
PRESTIGE
VOLKSWAGEN
MELBOURNE
‘14 VW
JETTASE
STK#PV3338, CERTIFIED
$
12,875
‘14 VW
TIGUAN SE
STK#VW121091
$
13,575
JUNE PRE-OWNED
SUPER SALE!
‘15 VW
JETTA1.8T SE
STK#PV3327, CERTIFIED
$
13,775
IT’S LIKE
ROADSIDE ASSISTANCE
FOR CAR BUYING
‘15 VW
PASSAT
STK#VW12219A, CERTIFIED
$
13,950
‘15 VW
PASSAT 1.8T SE
STK#VW12099A
$
14,727
‘15 VW
JETTA1.8T SE
STK#PV3329, CERTIFIED
$
14,925
FAIR FAIR DEAL DEAL
‘14 VW
PASSAT SEL
STK#VW12022A, CERTIFIED
$
14,975
‘15 VW
TIGUAN SE
STK#PV3349, CERTIFIED
$
15,275
‘16 VW
JETTA1.4T SE
STK#PV3334, CERTIFIED
$
15,675
GOOD DEAL
‘15 VW
GOLF TSI SE
STK#PV3343, CERTIFIED
$
16, 745
‘15 VW
PASSAT 1.8T SE
STK#VW12216A, CERTIFIED
$
16,925
‘14 MERCEDES
GLK250
STK#VW12268A
$
22,945
GREAT DEAL
‘16 TOYOTA
TUNDRA XP DC
STK#VW12257A
$
28,977
‘15 VW
GOLF R
STK#PV3351, CERTIFIED
$
31,840
‘17 VW
TOUAREG
STK#PV3348, CERTIFIED
$
38,899
PRESTIGE
VOLKSWAGEN
MELBOURNE
1416 S. Harbor City Blvd
Melbourne, FL 32901
321.574.8276
www.melbournevw.com
Tax, title, tag, and $795 dealer fee not included in the price shown.
Not responsible for typographical errors. Photos are for illustration
purposes only.
© 2018 Cars.com, LLC
Average Car
Payment Hits All-
Time High as Loan
Terms Near 6 Years
By Jen Burklow
Cars.com illustration by Paul Dolan; GalIstvan/iStock
The average monthly loan payment taken
on by new-car buyers hit a record $523 in
the first quarter of 2018, up $15, or about
3 percent, from a year ago, according
to credit tracker Experian. About 85
percent of new cars are bought with
financing, and the increase in the average
payment tracks with increased sales of
more expensive SUVs and also an uptick
in new-car loan rates.
FT-0000600126
The average loan amount for a new car
in the first quarter was $31,455, up $921
from a year ago. Meanwhile, the average
interest rate was 5.17 percent, up nearly
one-third of a point.
Buyers also are making those higher
payments for a long time, even though
longer loans were not enough to keep the
average payment from rising. The average
loan term in the first quarter edged closer
to six years, increasing to 69.03 months.
And three-quarters of new-car loans
were 61 months or longer.
New-car leasing continues to be an
attractive alternative for getting a lower
monthly payment. The percent of all new
vehicles that are leased declined slightly
from a year ago but remains at nearly 30
percent, and is used by more than a third
of buyers with higher credit scores. The
average lease payment was $436 in the
first quarter, up $26, or about 6 percent,
from a year ago.
The average loan payment for used cars
also rose in the first quarter, but more
moderately than for new cars. The
average payment was $372, up $9 or
about 2 percent. The average loan length
was not far behind new cars, however, at
64.23 months, and the average loan rate
for used cars was 9.18 percent.
Other highlights from Experian’s State
of the Automotive Finance Market Q1
2018 report:
• While buyers are borrowing more,
rates of loan and lease delinquencies
seemed to be stabilizing after recent
increases. Loans and leases 60 days
past due held steady from a year ago at
0.66 percent, while those 30 days past
due declined slightly to 1.9 percent.
• Lenders wrote more loans and
leases for buyers with better credit.
The shares for subprime and deep
subprime buyers (credit scores of 300
to 500) declined, while they increased
for prime and super prime buyers
(credit scores of 661 to 850).
• Credit unions increased their share of
overall auto lending and leasing from
a year ago to 21.3 percent, behind
banks at 31.6 percent and automakers’
finance units at 29 percent.