H. Yoo
Research expert covering South Korea
Car financing and leasing in the United States - statistics & facts
There are millions of car sales each year in the United States. While some consumers can purchase them outright, the majority of new vehicle transactions and a large share of used vehicle transactions are financed. For consumers, this enables them to smooth the cost of the purchase over several years. Meanwhile, the different types of automobile loan providers generate revenue from the interest rates and have the car as collateral. Those services can be provided by banks, credit unions, captive finance companies that are the subsidiary of vehicle manufacturers, or car rental companies where clients can lease a vehicle.
