New Vehicle Loans Rise as Used Vehicle Loans Decline

Over the last three quarters, new vehicle loans have steadily increased, showing signs of a recovering market, while used vehicle loans have experienced consistent declines over the past two years. As new vehicles require larger loans and used vehicle financing tightens, this presents a key opportunity for dealerships to sell Vehicle Service Contracts (VSCs). Offering VSCs can ease customer concerns and provide added protection, especially in an inflationary environment with rising repair costs.