CCC Crash Report outlines vehicle claim trends

The average interest rate on new car loans rose 7.1% in July 2024, the highest since the Great Recession. Used car loan rates reached 11.4%, significantly higher than in recent years. This increase in interest rates has led to higher monthly payments for car buyers, with nearly 18% of new car loans now having a monthly payment of $1,000 or more.

The rising cost of car loans has contributed to a surge in auto loan debt, which now exceeds $1.6 trillion. Auto loans now make up 9.1% of total household debt, indicating that many consumers are relying on credit to purchase vehicles. Despite a slight increase in the supply of new vehicles, prices remain elevated due to ongoing economic challenges and inflation.

While the frequency of auto collision claims has been slowly declining, the number of total loss vehicles has increased. This is primarily due to the decrease in used car values and the aging of the vehicle pool. As a result, more vehicles are being totaled rather than repaired, which can impact shop capacity and cycle times.

Read more: https://lnkd.in/ewyApY2g

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