Car-Buying Grabbing More Wallet Share
Report shows car loan amounts, down payments rising along with interest rates.

Sixteen percent of consumers who financed a new car in the fourth quarter have monthly payments of at least $1,000, a record.
IMAGE: Getty Images/GrvPixels
A new report quantifies the rising cost of consumer car loans, which are getting more and more expensive.
Car-shopping research website Edmunds shows that about 16% of consumers who financed a new car in the fourth quarter have monthly payments of at least $1,000, the highest ever level. That compared with 10.5% a year earlier and 6.7% in the fourth quarter of 2020.
Even some used-car buyers committed to the same payment segment – a record 5.4%, up from about 4% year-over-year and from 1.5% two years earlier.
Edmunds also reported that down payments on car purchases are rising. The average for new and used cars also made records in the quarter, jumping to $6,780 and 3,921, respectively.
Rising interest rates are a big factor in the increasing cost of buying a vehicle. The average annual percentage rate on new cars reached 6.5% in the fourth quarter, Edmunds reported, up from 5.7% quarter-over-quarter and from 4% year-over-year.
Meanwhile, more consumers are shifting from leases to purchases. Edmunds says the new-vehicle lease penetration rate dropped from 29% in the fourth quarter of 2019, just before the pandemic, to 16% in the recently ended quarter. Among luxury-vehicle shoppers, it fell from 53% to 26%.
LEARN MORE: Shedding Light on the Current Auto Lending Picture
Originally posted on Auto Dealer Today
More Industry

RV Group Expands Carolina Footprint
Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.
Read More →
Agent Acumen
An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.
Read More →
Missed Maintenance Creates Opportunity
As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.
Read More →
Mitsubishi Unveils U.S. Plan
The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.
Read More →
Selling to Grow
The question of whether you should sell your agency and if so, when, is up to you. But it’s a question worth asking to ensure you keep the business on the right path for yourself, employees and clients.
Read More →
Recalled Vehicles Hit 5-Year High
Though the number of events has fallen so far this year, impacted units are up significantly. Meanwhile, regulators consider consumer notification changes.
Read More →
Auto Group Acquires Top-Performing Rooftop
Car Pros sold its Kia Huntington Beach location to Sutherlin Automotive Group, marking the buyer’s third location in Southern California.
Read More →
China as Pacesetter
Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.
Read More →
BMW Concept Car Makes Fuel to Burn
The prototype developed in concert with a South Carolina university engineering team generates more solar energy than it uses in a typical daily commute.
Read More →
South Carolina Auto Group Downsizes
Florida-based group Holler-Classic has acquired four rooftops, its first in South Carolina, from Dick Smith Automotive Group.
Read More →