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