Auto Loan Payments, Rates Hit Record Highs
The average payment climbed to $717 in the fourth quarter of 2022, which is 50% higher than in 2010, according to Edmunds.
The average payment climbed to $717 in the fourth quarter of 2022, which is 50% higher than in 2010, according to Edmunds.
IMAGE: Getty Images
Americans are making record payments on their new vehicle loans, with the average payment climbing to $717 in the fourth quarter of 2022.
This figure is 50% higher than in 2010, according to Edmunds.
What’s more, the percentage of U.S. consumers paying over $1,000 a month for a new vehicle also soared to record heights over the last three months.
Edmunds reports nearly 16% of consumers who financed a new car in the fourth quarter have monthly payments at $1,000 or more, compared to 10.5% in 2021.
Rate increases also are causing some shoppers to rethink their new vehicle purchase plans. The average annual percentage rate for new vehicles rose to 6.5% in the fourth quarter, from 5.7% in the third quarter and 4.1% in 2021, Edmunds reported. Now dealers are seeing some customers back out of pre-sold vehicles for the first time in two years, David Christ, head of Toyota Motor Corp. brand sales in the U.S., told AutoBlog in an interview.
Originally posted on Auto Dealer Today
More Industry
Pennsylvania Dealership Under New Retailers
The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.
Read More →
Battery Storage Takes Priority Over EVs
U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.
Read More →
Auto Dealers Feel Better But Not Great
A second-quarter Cox Automotive poll of franchised retailers and independents found better views of the current market after a good spring but anticipation of third-quarter storminess.
Read More →
New-Vehicle Sales Picture Relative
A May forecast is complicated by last spring’s trade tariff effects on auto retail. Despite continued hard realities, many consumers took advantage of ways to bite the bullet.
Read More →
Auto Group Acquires Third Nissan Rooftop
Iowa-based Coleman Automotive Group recently acquired its seventh dealership, McGrath Nissan, which it renamed Nissan of Elgin.
Read More →
April Less Affordable
Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.
Read More →
Building an Extraordinary F&I Agency
Work to determine your specialized talent, because that fact will determine everything about your agency’s future.
Read More →
EVs Getting More Attractive
A growing percentage of U.S. consumers are open to switching and fewer are adverse to the idea, according to a recently completed survey. That’s despite the end of a tax break.
Read More →
EV Sales Drop in April Following Surge
North American electric-vehicle sales were down 28% year-over-year, a sharp contrast from global EV sales growth of 6%.
Read More →
Auto Lenders, Consumers on a Tightrope
April borrowing data shows that more consumers are bending over backward to buy vehicles, though subprime lending cooled off for the month.
Read More →