"Longer Loans on the Rise: New Vehicle Sales Trend Raises Concerns A recent report from Experian reveals a worrying trend in the automotive industry, as nearly 36% of new-vehicle loans and 32% of used-vehicle loans in the first quarter exceeded 72 months, a traditional benchmark for loan duration. This shift towards longer loan terms may be a response to rising vehicle prices and increased consumer demand, but it also raises concerns about the potential financial burden on borrowers. As the average loan term continues to creep up, experts are warning that drivers may be taking on more debt than they can handle, potentially leading to a rise in delinquencies and defaults. Will this trend continue, or will lenders start to reevaluate their lending practices?"
Nearly 36 of new-vehicle loans and 32 percent of used-vehicle loans in the first quarter were longer than 72 months, Experian said.
