Consumers were more likely to pay their auto loans before their credit cards and mortgages in 2011, according to an update to a study by the credit bureau TransUnion.
The comeback of the U.S. auto industry is cruising along, led by an impressive performance by Chrysler, which reported its February sales jumped 40 percent from a year earlier.
Subaru earned the top score overall in the Consumer Reports “report cards” for 2012 for 13 major automakers, bumping perennial No. 1 Honda which the magazine said has been hurt by redesigned models.
Interest rates on loans for new and used vehicles reached their lowest levels since 2008, as lending increases to subprime borrowers, according to Experian Automotive’s latest quarterly report.
Dealer-arranged financing to purchase cars, SUVs and light trucks can be a “complicated, opaque process” and could potentially involve unfair or deceptive practices, according to the Federal Trade Commission.
U.S. consumer borrowing from using credit cards and taking out loans to buy autos and attend college surged again in December, a much bigger jump than expected and a good sign for the economic recovery.