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Key consumer research

Affordability

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Daily expenses continue to grow at a faster pace than wages and income, leaving consumers with less money to spend on their vehicles. As a result, consumers are putting more focus on monthly payments and signing up for longer loan terms to keep cars within their monthly budget requirements.

- %
Real median household income

Real median household income is down 2.4% from 15 years ago.1

%
expenditures as PERCENTAGE OF INCOME

Average annual expenditures account for 89% of income after taxes (up from 85% 3 years ago).2

%
IMPORTANCE OF AFFORDABILITY

65% feel it is important to understand the affordability of the vehicles they are considering.3

%
IMPORTANCE OF
MONTHLY PAYMENT

VS.

%
IMPORTANCE OF FINAL PURCHASE PRICE

66% think monthly payment is most important (vs. 34% final purchase price).4

 months
Average loan term

The average loan term at the end of 2016 was 68.58 months (an all-time high for the last 10 years).17

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1. Census Bureau
2. BLS Consumer Expenditure Survey
3. 2016 Cox Automotive Emotional Connections
4. 2016 KBB Dealership Experience Study
17. Dealertrack Credit App Network, Jan 2017