Consumer borrowing rises on new car loans | Auto Finance News

Consumer borrowing rises on new car loans

New auto loans helped drive consumer borrowing to a massive $17.8 billion in January, the Federal Reserve announced recently.

The demand for car credit and student loans rose sharply during the first month of the year, with overall borrowing in those categories topping $20.7 billion, the largest increase since 2011. Those massive numbers were offset slightly by a $2.9 billion reduction in overall credit card debt.

The economy added roughly 243,000 jobs in January, and consumer confidence has been climbing steadily over the past year, according to an Associated Press analysis of the Federal Reserve findings. This could mean more consumers are feeling secure in their decision to purchase a new or used car.

Industry sales figures bear out {?} the rise in new auto loans during the first part of the year. Overall auto sales were up 16 percent in February, with Chrysler seeing an incredible 40 percent boost in sales. Primarily, consumers have been picking up smaller cars, with Ford Focus and Honda Civic leading the sales increase that month. Hyundai, Toyota, Honda and Volkswagen also saw significant sales increases recently.

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Source: http://www.autonetfinancial.com/news/369491/consumer-borrowing-rises-on-new-car-loans/

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