GREY:VMSTF - Post by User
Post by
axegirl1on Jan 12, 2016 12:14pm
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Post# 24450067
RECORD AUTO SALES=ENORMOUS CHEAP FINANCING
RECORD AUTO SALES=ENORMOUS CHEAP FINANCINGNO U.S. Recovery is link to record auto sales as reported by the U.S. Unbelievably cheap credit is fueling auto sales. Another crisis is coming.
Forbes reported last month: During the third quarter of 2015, Experian determined the average amount financed for a new vehicle was $28,936, which is up $1,137 from the same period in 2014. Whats more, 44 % of buyers are now taking out loans for between 61 and 72 months, with 27.5% extending their new-vehicle indebtedness to between 73 and 84 months, with the latter representing an increase of 17.1 percent over the past year. As Casey readers know, the Federal Reserve has made it incredibly cheap to borrow money. In 2008, the Fed cut its key interest rate to effectively zero to fight the financial crisis. It has held its key rate at extremely low levels ever since. Today, its key rate is just 0.25%...far below the historical average of 5%. The average interest rate on a car loan is just 4.3% today. In 2007, the average car loan rate was 7.7%.