With record low interest rates, the average consumer is currently able to purchase nicer vehicles than they otherwise would have been able to afford or been approved a loan for. Edmunds.com financial analysis reveals that a variety of factors play into the current trend, but the biggest factors are low interest rates and easy-to-obtain credit. Consumers are choosing to finance newer and nicer vehicles with extended loans at a lower interest rate. This of course means that the consumer is paying more over the long term, but he or she can afford a nicer, newer and safer vehicle in the short term. Edmunds.com site analysts predict that the SAAR of new vehicles will rise substantially while the SAAR for used vehicles will remain stable. However, the future remains uncertain as consumers with low credit scores are obtaining credit easily, and the market is currently seeing an all-time high lease penetration rate of 27.9% YTD.
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