Typical monthly payment for a new vehicle hits record $743
FOX Business Flash top headlines for September 15
Check out what’s clicking on FoxBusiness.com
Typical monthly payments for a new car are getting steeper, according to the latest data from Cox Automotive and Moody's Analytics.
The average new car payment hit a record high of $743 in August, the Cox Automotive/Moody's Analytics Vehicle Affordability Index released Thursday showed. That figure is up 1.4% from $733 in July.
BIDEN PROMOTES EXPENSIVE ELECTRIC VEHICLES AT AUTO SHOW AMID RECORD INFLATION
Kelly Blue Book reported earlier in the week that the average purchase price in the U.S. for a new vehicle rose for a fifth consecutive month, hitting a record-high of $48,301 in August. It climbed 10.8% from August 2021.
Vehicles for sale at the Mercedes-Benz of Louisville dealership in Louisville, Kentucky, U.S., on Tuesday, Dec. 7, 2021. U.S. car sales inched higher, and inventories grew in October, a sign that some of the worst of the shortages hampering auto prod (Luke Sharrett/Bloomberg via Getty Images / Getty Images) According to the Cox Automotive/Moody's Analytics data, a median of 42.6 weeks of income was necessary to purchase a new car in August, compared to 37.7 weeks at the same time last year. Increased interest rates have contributed to the average new vehicle being less affordable, the Cox Automotive/Moody's Analytics report said. Ford F-150 pickup trucks at a dealership in Colma, California, US, on Friday, July 22, 2022. Photographer: David Paul Morris/Bloomberg via Getty Images (Getty Images) The prices of new vehicles have continued to climb, both month-over-month and year-over-year, according to the latest consumer price index data put out Tuesday by the U.S. Department of Labor. AUGUST INFLATION BREAKDOWN: WHERE ARE PRICES HITTING AMERICANS THE HARDEST? From a year ago in August, the average cost of new vehicles went up 10.1%, with the prices of new cars and new trucks rising 10.9% and 9.8%, respectively. The prices of new vehicles increased 0.6% from July, according to the unadjusted data. RICHMOND, CALIFORNIA – MAY 06: Used cars for sale are displayed on the sales lot at K&L Auto Expert on May 06, 2022 in Richmond, California. Wholesale used-car prices continue to fall with a 1 percent drop from March to April. Prices have fal (Photo by Justin Sullivan/Getty Images / Getty Images) The new-car market has been hit hard by the semiconductor shortage and supply chain disruptions for over a year, resulting in lower production and higher prices. GET FOX BUSINESS ON THE GO BY CLICKING HERE Meanwhile, the prices of used cars and trucks are about 7.8% higher than they were in the same month of 2021. On a monthly basis, they actually dropped 0.4%, however. Source: Read Full Article
