Automakers Have One Hot Seller Left: The Seven-Year Car Loan
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U.S. auto sales just crashed to the slowest pace in a decade. But among those few consumers still buying cars, one product is seeing unusually high demand: the seven-year loan.
In the last full week of March, 23% of new-vehicle buyers took out 84-month loans to finance their purchase, Joe Spak, an analyst at RBC Capital Markets, said in a report Friday that cited data from J.D. Power. Prior to the coronavirus crisis, loans that long were only 7 to 8% of the mix.