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We have noticed that installment loans to finance the purchase of automobiles constitute the largest single segment of consumer credit. The amount of the down payment, the term until maturity, and the interest rate determine the size of monthly payments.

As the auto loans are tightened, sales of new automobiles are declining because consumers are less willing to buy new and would rather stick to older vehicles. That’s why we notice most car owners of old cars are busy working on and repairing them.

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