IRVINE and SANTA MONICA, Calif. -

New auto finance analysis from Edmunds shows increases in term length and monthly payments. These metrics have made headlines for some time now as potential buyers focus on what they can fit into their budgets.

But Edmunds also noticed an increase in another data point that might help to illustrate the work completed within the F&I office and finance company underwriting department — a significant rise in down payments for both used- and new-vehicle deliveries.

According to information released on Tuesday, the average down payment connected with used-vehicle financing came in at $2,468 in July, representing a 6.6-percent lift year-over-year and a 12.7-percent climb during the past five years.

On the new-model side, the average down payment in July stood at $3,621, marking a 7.3-percent increase year-over-year and a 10.0-percent rise since 2012.

The down-payment movement is likely especially positive for the industry on the new-car side since Edmunds reported the average transaction price for a new vehicle was $34,558 in July, which is 2 percent higher than July of last year.

Kelley Blue Book spotted a similar development as analysts there reported prices for new models rose by $573 year-over-year to land at $34,721 in July.

“Once again, the declining sales of cars and the growing popularity of SUVs is driving up the average transaction price,” Kelley Blue Book analyst Tim Fleming said. 

Edmunds also noticed that interest rates on new-vehicle financing fell to a six-month low in July as automakers ramped up summer's zero-percent finance deals.

The annual percentage rate (APR) on new financed vehicles averaged 4.77 percent in July, down from 4.96 percent in June. And 11.3 percent of purchasers who financed took advantage of zero-percent financing, up from 9.47 percent in June and 10.2 percent a year ago.

“Zero-percent finance deals are common in the summer, but car buyers can save even more this year,” said Jessica Caldwell, Edmunds executive director of industry analysis. “Even though interest rates were lower on average in July than at any time in the past six months, they’re still hovering at highs not seen since 2009.

“These higher interest rates make zero-percent financing a big carrot for dealers seeking to lure car shoppers,” Caldwell continued as Edmunds’ data also indicated days to turn new metal in July was 76 days, the highest since July of 2009.

 Overall, interest rates on new-model financing have been higher in 2017 than in recent years. July’s average APR is up 5.6 percent year over year and is 14.2 percent higher than it was five years ago.

 “In today’s declining market, every sale counts,” Caldwell said. “We anticipate automakers will continue to ramp up zero-percent finance offers as we get deeper into the summer sell-down season.”

For used-vehicle financing, the average APR in July stood at 7.46 percent, which marked a 2.3 percent rise year-over-year. However, the latest reading also represents a 7.7 percent slide since 2012.

And when it comes to contract term length, Edmunds reported the average for used-vehicle contracts in July came in at 66.90 months. For new-model financing, the July average stood at 69.45 months.