Average Maturity of New Car Loans at Finance Companies, Amount of Finance Weighted
This dataset tracks average maturity of new car loans at finance companies, amount of finance weighted over time.
Latest Value
66.07
Year-over-Year Change
-0.33%
Date Range
3/1/2008 - 3/1/2025
Summary
This economic trend measures the average maturity of new car loans at finance companies, weighted by the amount of financing. It provides insights into consumer credit conditions and financing trends in the automobile market.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
The average maturity of new car loans at finance companies is an important indicator of credit availability and consumer behavior in the auto industry. It reflects the typical length of financing arrangements for new vehicle purchases, which has implications for household budgets, automaker sales, and the broader economy.
Methodology
The data is collected by the U.S. Federal Reserve through surveys of finance companies.
Historical Context
Policymakers and analysts use this trend to assess the state of consumer credit and financing preferences in the automobile market.
Key Facts
- The average maturity of new car loans peaked at 67.5 months in 2018.
- Longer loan terms can make new vehicles more affordable but increase overall interest costs.
- Trends in loan maturity reflect changes in consumer preferences and credit availability.
FAQs
Q: What does this economic trend measure?
A: This trend measures the average length of new car loans at finance companies, weighted by the total amount of financing.
Q: Why is this trend relevant for users or analysts?
A: The average maturity of new car loans provides insights into consumer credit conditions and financing preferences in the automobile market, which has implications for household budgets, automaker sales, and the broader economy.
Q: How is this data collected or calculated?
A: The data is collected by the U.S. Federal Reserve through surveys of finance companies.
Q: How is this trend used in economic policy?
A: Policymakers and analysts use this trend to assess the state of consumer credit and financing trends in the automobile industry, which can inform decisions and policies related to household finances, consumer spending, and economic growth.
Q: Are there update delays or limitations?
A: The data is published monthly by the Federal Reserve, with a typical lag of 1-2 months.
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Citation
U.S. Federal Reserve, Average Maturity of New Car Loans at Finance Companies, Amount of Finance Weighted (G20TERMSDTCTLVENMNM), retrieved from FRED.