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

World EV Adoption Set to Grow
A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.
Read More →
Black Book: Weekly Market Update
Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.
Read More →
Pricing Transparency Drives Purchase Consideration
An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.
Read More →
Black Book: Weekly Market Update
Used-vehicle market depreciation was the prevailing story in the wholesale market last week.
Read More →
Smaller Is Looking Better
A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.
Read More →
U.S. EV Market Slowly Stabilizes
U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.
Read More →
Global EV Market Entering New Phase
Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.
Read More →
Black Book Weekly Market Update
The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.
Read More →
Auto Affordability in Context
Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.
Read More →
Black Book: Weekly Market Update
Automotive auction inventory increased last week, giving choosy bidders even more leeway.
Read More →