Home Consumer debt U.S. consumers are going into more debt to buy new vehicles, reports Experian

U.S. consumers are going into more debt to buy new vehicles, reports Experian

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Auto loan debt rises amid soaring prices

U.S. consumers are responding to soaring prices for new cars and trucks by taking on more debt, pushing the average loan for a new vehicle to a record high of $40,290 in the second quarter, the credit monitoring firm said Thursday. Experian.

The average monthly payment for a new vehicle loan rose to $667 in the second quarter, up nearly 15% from a year earlier, Experian said in its latest auto finance market report. The average amount borrowed increased by 13.2%.

The average term of loans for new vehicles remained stable in the second quarter compared to a year ago, at just over 69 months.

Used car buyers are also borrowing more. The average used vehicle loan jumped 18.7% to $28,534, with an average monthly payment of $515, up 17%.

Despite the Federal Reserve’s efforts to cool the economy by raising interest rates, prices for new vehicles in the United States rose faster than the headline inflation rate for much of the year. Automakers say they still can’t keep pace with demand due to semiconductor shortages and other supply chain issues.

The average price of a new car or truck hit a record high of $46,259 in August, market research firm JD Power said this week.

Of the vehicles financed in the second quarter, 60% were sport utility vehicles, Experian said.

Whole Foods joins the promotion of chicken welfare

Amazon’s Whole Foods and HelloFresh are among nine food companies stepping up efforts to improve the lives of chickens.

The companies will join the US Broiler Welfare Task Force, which helps companies meet their animal welfare commitments. It partners with Perdue Farms, the fourth largest chicken producer in the United States. These changes come as organizations come under increasing pressure to change the way they raise animals for food.

(Amazon founder Jeff Bezos owns The Washington Post.)

Chickens raised for cooking are usually raised in controlled environments designed to grow them as quickly as possible. This can be bad for animal health and impact meat quality, according to the group. Current members of the organization purchased more than 540 million pounds of chicken last year, and their efforts could help 111 million birds a year, the group said.

Applegate, Pret a Manger, Sprouts and Natural Grocers are other companies that have joined. New members join companies like Target, Shake Shack and Nestlé USA, bringing the group to 16 members.

Wall Street giant Citigroup announced on Thursday that it would end its local retail and commercial banking operations in Russia and expects to incur approximately $170 million in fees over the next 18 months. Wall Street’s biggest financial firms have closed or announced their intention to close their operations in Russia after the invasion of Ukraine, in accordance with sanctions imposed by Western countries. Citigroup disclosed that its exposure to Russia stood at $8.4 billion as of June 30. The US lender has in recent years reduced its international footprint.