Pickup buyers took out bigger, longer-term loans in March and rolled in more negative equity from their previous vehicles.
An 84-month loan is “becoming a very mainstream offer very quickly,” Jominy said, going from 8 percent of sales during the second week of March to 23 percent in the fourth week. J.D. Power said 46 percent of light-duty pickup sales during the week ending March 29 were financed with 84-month loans, compared with 10 to 15 percent normally.
Fiat Chrysler Automobiles launched a new advertising campaign last week called “Drive Forward,” promoting 0-for-84-month loans, no payments for 90 days and “the ability to shop and buy from the safety of your home.”
“There are unprecedented deals available on pickups, at least the majority of pickups, at this time,” said Thomas King, president of J.D. Power’s data and analytics division. “Pickups are expensive vehicles. … That means that the savings you get from having a reduced interest rate are very, very powerful.”