August 12, 2022

La Ronge Northerner

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Car payments average $712 per month as prices for new and used cars continue to rise

Car payments average $712 per month as prices for new and used cars continue to rise

The average car price becomes lower for the average person, with typical monthly payments reaching all-time highs.

According to a report by Cox Automotive and Moody’s Analytics, affordability new vehicles It continued to climb in May for the fourth consecutive month, with monthly car premiums averaging $712 a month.

“Unfortunately for the segment of the population that may need it most, it’s getting more and more out of reach,” said Evan Drury, senior director of insights at car buying expert Edmonds. Tell NPR Difficulty buying a car.

Consumer Price Index May data showed that over the past 12 months, new car prices have increased by 12.6%, and this combined with higher interest rates has resulted in more monthly payments than ever before.

Used cars increased by 16.1%.

Used car prices continue to climb according to gas prices, and supply chain records drive demand

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

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

Middle-income buyers are priced out of the new car market

The Cox and Moody’s report said May saw an average of 41.3 weeks of income needed to purchase the average new car.

The main reason for the price hike is the constant computer chips shortage That operates many key functions in modern vehicles. According to Rebecca Rydzewski of Cox Automotive, things may not get worse, but there’s no sign of them improving anytime soon.

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Redzowski said in a statement included with Cox Report in June. “However, one should not expect a decline in prices, because limited supplies in the new market will keep prices at a high level until 2023.”