Experian’s State of the Automotive Finance Market Report revealed that average contract terms in the auto industry are continuing to decrease. This trend persists despite rising interest rates, as consumers increasingly opt for shorter-term contracts. The report highlights that this shift towards shorter terms is particularly prominent in new-vehicle financing. In the second quarter of 2023, the 1- to 48-month segment of new-vehicle financing increased to 14.58% from 9.53% in the same period last year.