Auto loan interest rates are rising, have hit the highest level since 2019, and will soon jump to 14-year highs.
New data from Edmunds showed the average annual percentage rate on new-car loans was 6.3% in October, the highest since April 2019, according to Bloomberg.
The Federal Reserve is expected to raise interest rates Wednesday again by 75 basis points for the fourth straight meeting in an unprecedented move — the most since the early 1980s to quell rampant inflation. This means the federal funds rate will have a new range of 3.75-4% — the highest level since 2007, and since APRs for new vehicles track the fed funds rate, expect it to hit highs not seen since early 2009 in the near term.
“New-vehicle inventory might finally be improving, but the automotive industry is still on a long road to recovery because rising interest rates are creating a major barrier to entry for car shoppers,” Jessica Caldwell, executive director of insights for Edmunds, said in an email.
Caldwell noted: “Many consumers who have been sitting out of the market due to high prices and limited options will likely continue to do so over high-interest rates.”
New car prices remain stubbornly high. Edmunds’ data shows the average new-vehicle purchase last month was $40,438 — more than 27% above April 2019 prices of $31,914.
“The average price of a vehicle has risen dramatically, there are fewer smaller, budget-friendly vehicles for shoppers to choose from,” Caldwell said. “And on top of that, consumers are paying more for everything else in their lives.”
Meanwhile, APRs for used cars are at a staggering 10.33%.
Now you get a Mortgage for a Car !!! 30 year Fixed
Bad enough the Dealers always screw you over & make Thousands < Now the Govt Screwed YOU !!
MORE stress on the lower and middle class.
Your “leaders” (you cheer them WILDLY, too, don’t forget that little piece of enlightenment) have allowed our country to be in debt by over 30 TRILLION DOLARS (read that again), forced taxpayers to foot their extravagant spending, driven “We, the People” to the brink of bankruptcy.
In reality, those same people don’t give a rat’s ace whether you live or die.
Still, you cheer.
Cheer for a revolution, if you want to have a chance of surviving the democrats reign of incompetent blundering.
we’ll have to take out a loan for groceries
You will need closing cost too !!!!!! Realtor Too !!!
Grateful I have a 1.9% loan back in 2020. My wife and I work and the prices are now definitely out of our price range. 30K is my limit and that price is now on the used car and truck market.
Some of them cost more than that paid for my home.
Insane!
Car dealers like COONS Rip people off as it is for ANY vehicle they sell !!!! Now interest Rates are Too High !!!