Experian Automotive Talks to 'Auto Trends' About the State of Car Financing

Melinda Zabrintski, who is the head of automotive financial insights for Experian Automotive, talks car payments and more. (Photo Credit: EA)

Over the past two years, the Federal Reserve has raised interest rates have 11 times. 

Melinda Zabrintski, who is the head of automotive financial insights for Experian Automotive, joins Auto Trends with JeffCars.com, the only multicultural syndicated automotive program in North America, to talk about the effect the rates have had on consumers financing and leasing new and used vehicles. 

Experian Automotive is a division of Experian credit, one of the leading credit bureaus in the U.S.

Moreover, Zabrintski touches on where consumers are getting their financing from.

Experian Automotive Talks Average Car Payments, Interest Rates And More On 'Auto Trends' Mother's Day Weekend

 

For those in the market for a new or preowned vehicle, tune in to Auto Trends with JeffCars.com Mother's Day weekend. Melinda Zabritski, Experian Automotive's senior director, joins us to talk about the impact the Federal Reserve raising interest rates multiple times over the past year, as well as the average transaction of a new and preowned vehicle topping out near $50,000 and $33,000, respectively, has had on consumers when they finance or lease. Experian Automotive is a division of Experian credit.

1st Quarter Auto Financing Trends: Latest Finance, Credit Score And Car Payments

For new and used car buyers in the market for a vehicle, we've got the latest data from Experian Automotive, a division of Experian credit, the latest car financing trends based on the first quarter of 2018.

New Car Stats

• The average new vehicle loan: $31,455, up $921 from 2017
• The average new vehicle monthly payment: $523, up $15 from 2017
• The average new vehicle interest rate: 5.17%
• The average new vehicle credit score: 716

Experian Automotive Joins "Auto Trends with JeffCars.com" To Talk About The Latest Finance Trends

Melinda Zabritski, a senior director for Experian Automotive’s, which is a division of Experian credit, serves as the primary analyst and spokesperson regarding key automotive finance trends.

Prior to joining Experian in 2004, Zabritski held various product management and analyst positions in the credit industry, where she managed and developed credit risk models and market trending and forecasting tools. During that time, she also was responsible for managing prescreen and account management product lines.

Besides Design, Technology And Price Wars, Long-Term Loans Driving Sales

There are just a few ways consumers are pushed into new car showrooms. Its 

due to a new design, price wars, consumers seeking the latest tech features 

or the need to replace an aging vehicle. However, Experian Automotive says 

cheap payments are driving loans due to 1 in 4 customers in the first quarter

stretching new-car loans from 60 to 72 months up to 73 to 84 months, up 27.6 

First Quarter Car Loan Analysis: Consumers Hit Record High Stretching Out New-Car Loans And Snatching-Up Low Lease Payments

As car sales continue to rise from the doldrums we experienced during the Recession, consumers eagerness to drive the latest rides and to roll away with manageable car payments are causing lenders to stretch out their monthly payments. Since Experian Automotive first started capturing loan data in 2006, this is the first time auto loans have reached 66 months (or 5 years and 6 months). And new-vehicle loans that span from 6 years to 7 years accounted for 25 percent of total loans consumers drove off in during the first quarter, increasing by 27 percent from the same period in 2013.