The cost of financing a new vehicle remains at an all-time high according to the car shopping experts at Edmunds.
Elevated interest rates continue to drive up costs, leading some consumers to take on $1000+ monthly payments. The average annual percentage rate (APR) ticked up a tenth of a percentage point to 7.1% in Q2, compared to 7.0% in Q1 and 5.0% in Q2 2022. 7.1% is the highest APR since Q4 2007.
“The double whammy of relentlessly high vehicle pricing and daunting borrowing costs is presenting significant challenges for shoppers in today’s car market,” said Ivan Drury, Edmunds’ director of insights. “The Federal Reserve’s recent pause in interest rate hikes unfortunately didn’t offer much relief for consumers, and hints at further raises later this year mean auto loan rates could even continue to increase.”
So we want to know, are you putting off buying a new vehicle due to the high cost of financing? Please answer in the forum below and your response may be read on a Channel 4 newscast.