Auto mortgage rates of interest soared to their highest ranges since 2019 whereas the common month-to-month cost for brand new autos handed $700 within the third quarter, in keeping with Edmunds.
Moreover, greater than 14 p.c of automobile consumers now have a record-high month-to-month cost over $1,000.
Edmunds mentioned the common annual share charge on financed new autos for the third quarter was 5.7 p.c — up from 4.3 p.c on the similar time final yr and up from final quarter’s 5 p.c.
“Since stock has been so low as a result of microchip scarcity, there hasn’t been loads of want for incentives,” Jessica Caldwell, Edmunds’ govt director of insights, instructed Automotive Information.
The business is coping with different provide chain points, she mentioned, noting Ford Motor Co.’s badging scarcity final week.
With costs on the rise, the common quantity financed for brand new autos additionally climbed, to $41,347 — up from $38,315 in third-quarter 2021 and up from second-quarter 2022’s $40,602.
Together with elevated APR and common quantity financed, the common month-to-month cost for a brand new car within the third quarter was greater than $700, with 14.3 p.c of shoppers taking over a record-high month-to-month cost of greater than $1,000, Edmunds mentioned.
“You might need paid $500 a month for this car final time, and now $700,” Caldwell mentioned.
