Auto News for June 1
The average loan term for a new car is now 67 months and for a used one 62 months, both an all-time high, according to Experian Automotive. Terms of 73 to 84 months have also set a record of nearly 30 percent of all new car loans. “It is critical for consumers to understand that if they take a long-term loan, they need to keep the car longer or could face negative equity should they choose to trade it in after only a few years,” said Melinda Zabritski, Experian’s senior director of automotive finance.
Authorities estimate that thousands of vehicles may have been flooded in Texas and parts of the South-Central U.S. from record breaking rainfall and wide spread flooding. The National Insurance Crime Bureau said it is working with law enforcement agencies, insurance companies, and rental firms to identify and catalog damaged vehicles to keep them from being resold to unsuspecting consumers. “Unfortunately, natural disasters bring out dishonest salvage dealers who don’t tell you that the vehicles they’re selling are heavily water damaged,” said the NICB.
Experts think May auto sales will still be robust thanks to Memorial Day sales but might be slightly below those of a year ago. We will know for sure tomorrow when sales figures are released.
BMW is again offering its “Ultimate Driving Experience” around the country and one of the programs is aimed at teen drivers. It is a two hour free program that focuses on improving driver skills, and the consequences of texting while driving and how it affects not only teens – but everyone who driving a vehicle. Eligible drivers under the age of 21 can register for the school if they have a learner’s permit or driver’s license. You can find out more at #DrivingIsBelieving.