Average monthly new and used car payments remained elevated last quarter. Shoppers paid $30 more a month for new cars, while used car payments dipped by $2.
New car buyers spent more monthly to finance less, with the interest rate rising and the term shortening. In Q3 2023, buyers financed, on average, $40,149 for 68.4 months, paying $736 a month with a 7.4 percent APR. During the same quarter last year, people would pay $703 per month at 5.7 percent for 70.3 months on $41,347.
Used car monthly payments fell slightly last quarter to $567 compared to Q2 2023, but they remain elevated from the $565 people were paying in Q3 2022. The average amount financed for a used car also fell to $29,328, down from $31,367 in Q3 2022 and $29,665 in Q2 2023.
A record number of new car buyers signed up to pay $1,000 a month or more for their vehicle in July, August, and September. The share of those consumers increased from 17.1 percent to 17.5 percent in the last quarter.
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