![]() ![]() Several factors go into an auto loan’s rate, but it’s overall based on the benchmark rate set by the Federal Reserve. (For new cars, with average prices now exceeding $47,000, many Americans are paying $1,000 a month or more.) Compared that to July of last year, when average monthly payments were $502, with an APR of 7.5%. In July, interest rates for used auto loans hit 8.8%, according to Edmunds - shooting the typical monthly payment to $564, a series high. “Affordability has worsened as we’ve seen big increases in interest rates, especially over the last few months,” said Jonathan Smoke, Cox Automotive’s chief economist, in a recent auto market report. Get a Free Quote Monthly car payments on the riseĪnother reason you might want to keep the Champagne corked? Interest rates on auto loans are rising - and higher rates can cancel out the benefit of a cheaper purchase price. For a free quote, click below and get started. In short, the used car market is still out of whack, and you may even come across certain models of used cars priced higher than the brand new version.ĬarShield offers extended warranties that protect your vehicle for up to 200,000 miles. In July, the average trade-in value of a used vehicle was about $23,500 - historically high but a 1.6% drop from the prior month. “They will likely start seeing depreciation chip away at their vehicle values, which could make someone want to line up their next purchase sooner later,” Drury says. On the other hand, cheaper used car prices could have the opposite effect for those who are looking to trade in their vehicle to knock down the price of a brand new one. ![]() In other words, you won’t likely have to make any rash buying decisions for fear of skyrocketing prices like in months past. But the trend does give you “the gift of additional time,” Drury says. The recent drop in prices isn't noticeable enough for folks to sprint to a dealer. In February 2020, before the pandemic, used cars were selling for about $20,700 on average. Hawaii Alaska Florida South Carolina Georgia Alabama North Carolina Tennessee RI Rhode Island CT Connecticut MA Massachusetts Maine NH New Hampshire VT Vermont New York NJ New Jersey DE Delaware MD Maryland West Virginia Ohio Michigan Arizona Nevada Utah Colorado New Mexico South Dakota Iowa Indiana Illinois Minnesota Wisconsin Missouri Louisiana Virginia DC Washington DC Idaho California North Dakota Washington Oregon Montana Wyoming Nebraska Kansas Oklahoma Pennsylvania Kentucky Mississippi Arkansas Texas View RatesĬompared to July 2021, used car prices are up 7.4%, or about $2,000 more expensive. ![]()
0 Comments
Leave a Reply. |