Typical monthly payment for a new car is $743
Typical monthly payments for a new car are getting steeper, according to the latest data from Cox Automotive and Moody’s Analytics.
Average new car payments hit a record $743 in August, according to Cox’s Automotive/Moody’s Analytics Cost of a Car Index released Thursday. That number is up 1.4% from $733 in July.
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Kelly Blue Book reported earlier in the week that the average US purchase price for a new car rose for the fifth consecutive month, hitting a record high of $48,301 in August. It is up 10.8% from August 2021.
According to Cox Automotive/Moody’s Analytics data, a median income of 42.6 weeks was needed to buy a new car in August, compared to 37.7 weeks at the same time last year.
Cox Automotive/Moody’s Analytics report said increased interest rates made the average new car less expensive.
New car prices continued to rise, both on a monthly basis and on an annual basis, according to the latest consumer price index data released on Tuesday by the US Department of Labor.
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A year ago in August, the average cost of new vehicles was up 10.1%, with prices for new cars and new trucks up 10.9% and 9.8%, respectively. New car prices rose 0.6% from July, according to the unadjusted data.
The new car market has been hit hard by semiconductor shortages and supply chain disruptions for more than a year, leading to lower production and higher prices.
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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 are already down 0.4%.