In May, the average monthly car payments reached a record high – $ 712
The amount that consumers have to pay to buy a new car has increased again. In May, monthly car payments increased by 1.7% to $ 712.
This is a record for monthly payments Cox Automotive, which recently announced a new vehicle availability index. Revelation is bad for consumers, because here almost all factors act against them.
Although the average income increased by 0.3 percent, incentives decreased, the average interest rate increased and the price paid increased by one percent. All this means that it is more difficult for consumers to buy new cars than before, before they think about the price of the gas used to power them.
Also read: Sales of new cars are forecast to exceed 20% compared to last May
In fact, Cox Automotive found that the average weekly income needed to buy a new car has increased for the fourth month in a row. In May, consumers needed 41.3 weeks’ income to pay for the car, up from 40.8 weeks in April. It should be noted that this is 19% higher than in May 2021.
NBC, in the meantime, the problem is expected to only get worse. As the Federal Reserve raises interest rates by 0.75 percentage points, the cost of many consumer loans, including cars, is expected to be even higher.
Despite Russia’s ongoing invasion of Ukraine, China’s COVID blockade, and a truck strike in South Korea, there are still problems with delivery lines, and Kelly Blue Book’s Brian Moody is optimistic about transportation prices.
“Although prices have risen in May, they are only one percent, which indicates that we may be heading for a place where prices are starting to fall,” Moody’s said. ABC News.
While monthly prices rose by only one percent, the price of new cars is 12.6 percent higher than a year ago. According to the US Bureau of Labor Statistics, the cost of used cars is 16.1% higher than last year. In May, it raised the average transaction price for new vehicles to $ 44,832 and for used vehicles to $ 31,450.
While supply chains are still a concern for producers, consumer pressure is growing as credit rates rise and incomes are not maintained. According to Moody’s, there are still agreements with less popular brands such as Mazda, Hyundai and Buick.
