FI showroom red and grey logo
MenuMENU
SearchSEARCH

Consumer Credit Rises; Interest Rates Dip, Federal Reserve Says

Consumer credit rebounded in March to an annual rate of 1 percent after it decreased in February to an annual rate of 3 percent, according to the Federal Reserve’s monthly report.

by Staff
May 11, 2010
2 min to read


Consumer credit rebounded in March to an annual rate of 1 percent after it decreased in February to an annual rate of 3 percent, according to the Federal Reserve’s monthly report.

Non-revolving credit, which includes auto loans, rose at an annual rate of 4 percent in March and increased at an overall annual rate of 4 percent in the first quarter of this year. Revolving credit fell at an annual rate of 4.5 percent in March and dropped at an overall annual rate of 6.2 percent.

Ad Loading...

Interest rates on new-vehicle loans receded to 4.28 percent in March, a drop from 4.72 percent in February, but still higher than 3.94 percent in January. The average interest rate on new-vehicle loans was 4.31 percent in the first quarter.

Loan terms remained stable at 62.8 months in March, compared to 62.5 months in February and down from 63.5 months in January. The average loan term in the first quarter was 62.9 months.

The loan-to-value ratio on new-car loans dropped for the third-consecutive month to 88 percent in March, down from 89 percent in February and 90 percent in January. The average loan-to-value ratio in the first quarter was 89 percent.

Amount financed also fell for the third-consecutive month to $27,912 in March, down from $28,040 in February and $29,379 in January. The average amount financed in the first quarter was $28,444.

 

More Auto Finance

Auto Financeby Lauren LawrenceFebruary 23, 2026

Auto Loan Forecast Bucks Market Trend

Auto loan originations rose over 6% year-over-year in the third quarter of 2025, but TransUnion predicts a slight decline in auto loan growth this year, making it an outlier in the company's overall lending forecast.

Read More →
Auto Financeby Hannah MitchellFebruary 11, 2026

Auto Credit More Plentiful

Growing access shows greater lender appetite for risk as consumers take on heavier debt burden in an inflated market.

Read More →
Auto Financeby Hannah MitchellJanuary 27, 2026

Auto Loans Long as Stretch Limos

More consumers, faced with ever-rising car prices, are adapting by agreeing to longer loan terms despite the cost of added interest payments.

Read More →
Ad Loading...
A person holds a stack of cash with a small red toy car on top.
Auto Financeby StaffJanuary 20, 2026

AutoPayPlus Launches RePayPlus

The reinsured biweekly payment program offers auto dealers with customer retention and reinsurance structure.

Read More →
F&Iby Hannah MitchellJanuary 12, 2026

Auto Credit Access Loosens

December brought some of the best borrowing availability for consumers in years, though lenders tightened their reins on riskier segments of the market.

Read More →
A hand holding small burlap money bags next to a toy red car, symbolizing auto financing, loan payments, and dealership profitability.
Industryby StaffNovember 14, 2025

Report Uncovers $4.7B Opportunity for Auto Dealers

Solving mismatched payment quotes can boost sales, profits

Read More →
Ad Loading...
Industryby Hannah MitchellNovember 10, 2025

Auto Loans More in Reach

October easier to tap despite approval rates falling

Read More →
Industryby Hannah MitchellNovember 3, 2025

Q3 Auto Loans Reveal Stress

Data reflect growing finance activity on the extreme ends of credit risk scale

Read More →
Industryby Hannah MitchellOctober 15, 2025

Debt-Strapped Auto Consumers on the Rise

The amounts owed on under-water trade-ins reach new highs.

Read More →
Ad Loading...
F&Iby Hannah MitchellOctober 10, 2025

Helping the Credit-Crunched

Though many auto consumers are finding it challenging to trade, dealers can leverage conditions to help them get over the hump.

Read More →