The automobile market is hot right now and that has driven the total outstanding value of car loans to more than $1 trillion.
This is the first time loans have reached the $1 trillion mark for vehicles.
According to reports the $1 trillion mark was hit because of strong car sales, the rising price fo vehicles, and low-interest rates.
Top borrowers can now obtain a vehicle with an APR of less than 3%.
“There are a lot of lending choices for consumers, a lot more competition,” said Jason Laky, automotive business leader at credit agency TransUnion, told CNN Money. “That’s made financing more widely available and very attractive.”
New car sales are up 6% in 2015 as American buyers flock back to SUVs, Trucks, and other gas guzzling vehicles that tend to sell well when gas prices are low.
More expensive vehicles have led to an 11% jump in the size of car loans.
The average amount borrowed is about $21,700, and buyers owe nearly $18,000 on average. The average new car purchase price now stands at $32,529, according to sales tracker TrueCar.