The number of consumers taking on new-vehicle loans with monthly payments of $1,000 or more hit a record high last quarter, underscoring just how expensive it’s becoming to get behind the wheel. With the cost of financing skyrocketing, analysts are advising potential buyers to consider alternatives, such as used cars or new EV leases, to keep their budgets in check.
During the final quarter of 2024, the average amount financed for new vehicle purchases in the US climbed to $42,113, up from $40,713 in Q3 and significantly higher than the $39,977 average from Q4 2023. Among those locked into new-car loans, a striking 18.9% are now grappling with payments of $1,000 or more – a far cry from what most would consider affordable.
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