Welcome to the Daily 5 report for Wednesday, July 2.
A record 19 percent of new-car buyers in the second quarter committed to a monthly payment of $1,000 or more, according to Edmunds, up from 18 percent last year, Paige Hodder reports.
New-car buyers in the second quarter also set a record for the highest share of loans with terms of 84 months or longer. Roughly 22 percent of buyers who financed with a loan signed up for that extended term, up from about 18 percent a year ago.
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"Consumers are continuously stretching to afford new vehicles in this market," said Ivan Drury, Edmunds' director of insights. "While tariffs haven't directly driven these Q2 numbers, they're certainly not going to make things any easier for shoppers moving forward."
These records are just the latest news emphasizing the affordability constraints in today's auto retail market. Car prices and payments are high and rates are steady, a combination that has car buyers struggling to keep their payments affordable and their loans manageable.
"It's clear that buyers are pulling the few levers they can control to manage affordability," Drury said, "whether that's by taking on longer loans, financing more or putting less money down — even if some of those decisions increase their total costs."
Another record set: The proportion of consumers at least 60 days late on their loans rose to 1.4 percent in the first quarter, a record for that time period that beat the 1.3 percent a year earlier and during the recession-era first quarter of 2009, according to TransUnion data. Can't say we're surprised.
Two more stories to check out are Tesla's global deliveries falling 13 percent in the second quarter from a year earlier and Porsche launching several new 911 variants.
Lastly, U.S. vehicle sales results continue trickling in, so keep up with all the happenings on our sales live blog.
That's it for now. Have a great rest of your day.
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— Wes Raynal, assistant web editor
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