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

Kia Closes Out Summer With a Bang
Its U.S. subsidiary broke multiple records in August, in part due to a surge of demand for hybrids models.
Read More →
Indiana Dealership Changes Hands
A 30-year-old Ford dealership in Indiana has a new owner and will soon be undergoing renovations to meet manufacturer requirements.
Read More →
Texas Dealership No Longer in the Family
The Ford store, a longtime cornerstone of the Houston market, is now part of one of the fastest-growing U.S. auto groups.
Read More →
Genesis Grows California Presence
The Cardinale Automotive Group opened its third Genesis rooftop in the Golden State, Genesis of San Bruno, a stand-alone dealership serving the San Francisco Bay Area.
Read More →
August Auto Sales a Mixed Bag
An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.
Read More →
EV Market Humming Along
July sales show steady growth as the segment stabilizes from last year’s artificial surge following pullback of federal support.
Read More →
Auto Loan Delinquency Rates Stabilize
Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.
Read More →
EV Sales Recover in Q2
The EV sales roller coaster continues as numbers show improvement, but industry experts predict a year-over-year third-quarter decline and fourth-quarter jump.
Read More →
The Cheapest Hybrids to Fuel
The powertrain is increasing in popularity, in no small part due to its fuel economy. A new report lists the most efficient hybrids on the market.
Read More →
Hybrids and SUVs Gaining Ground
The most recent Kelley Blue Book Brand Watch found that only two nonluxury brands increased in shopper consideration, buoyed by their hybrid and SUV offerings.
Read More →