Common automotive funds hit a document $712/month as new vehicles, used automotive costs proceed to rise

Ordinary cars cost less and less to the average person, with regular monthly payments hitting all-time highs.

According to a report by Cox Automotive and Moody’s Analytics, the affordability of new vehicle continued to grow in May for the fourth consecutive month, with monthly vehicle payments averaging $712 per month.

“Unfortunately for the segment of the population that probably needs it most, it’s increasingly out of reach,” said Ivan Drury, senior manager at car buying specialist Edmunds, tell NPR difficulty of buying a car.

Consumer price index data from May shows that in the previous 12 months new car prices have increased by 12.6%, which and rising interest rates have made monthly payments higher than ever.

Used cars increased even more strongly with an increase of 16.1%.

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According to Kelly Blue Book, the average new car purchase price in May was $47,148.

“I joke with people that every new car purchase is a luxury car purchase, I don’t care what you’re buying,” Drury told NPR.

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The Cox and Moody’s report said Mrs May found an average income of 41.3 weeks needed to buy an average new car.

A major cause of price increases is constant lack of computer chips run many key functions on modern vehicles. According to Rebecca Rydzewski of Cox Automotive, things may not get worse, but there’s no sign that they will get better any time soon.

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“New and used car prices are showing signs of stabilizing, and price growth is likely to slow through the summer as the anniversary of the ‘strong drop’ in inventories passes,” Rydzewski said in a note. an accompanying statement a Cox . report in June. “However, no one should expect prices to fall, as tight supply in the new market will keep prices high in 2023.”

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