As interest rates rise for all types of lending, the impact is being seen in the auto buying segment of the cconomy. However, Americans don’t seem to be significantly slowing down their auto buying spree. A couple of interesting statistics were cited in a headline summary for a research report from Market Scan, which tracks various industry segments.
Rising interest rates, along with still-lowered inventories, continue to make it more difficult for car shoppers to afford record-high pricing on new vehicles. The average interest rate on a new-car loan in the U.S. hit 5.7% in the third quarter, the highest in three years.
Americans also are financing more of the purchase price than ever, reflecting record-high car prices. The average amount financed per vehicle in the third quarter was $41,347, compared with $38,315 a year earlier. And 14% of auto-loan customers during that same period took on a monthly payment of $1,000 or more, up from 8% a year earlier. That’s according to the Wall Street Journal.
Statistics courtesy of MarketScan
