October 6, 2022

eastwindla

Make Somone Happy

Luxury car buyers pay more than ever as prices and loan costs rise

3 min read

[ad_1]

If you can even find a new car to buy, actually purchasing it is going to cost you.

“It’s a really difficult time to buy a car,” said Jessica Caldwell, executive director of insights at Edmunds.

Limited inventory due to a persistent shortage of computer chips, along with other supply-chain challenges, helped propel new car prices up 12.6% from a year ago and used car prices 16.1% higher, according to the latest data from the U.S. Bureau of Labor Statistics.

For new cars, the average transaction price is expected to reach an all-time high of $45,844 in June, according to a separate J.D. Power/LMC Automotive forecast. 

Rising interest rates mean higher loan costs  

And still, luxury shoppers are flocking to dealerships, willing to spend more on high-end cars and the financing to go along with them.

For the first time, just over 12% of consumers who financed a new car in June committed to a monthly payment of $1,000 or more — the highest level on record — compared with 7.3% one year ago, Edmunds found.

“Although there appears to be a steady stream of affluent consumers willing to commit to car payments that look more like mortgage payments, for most consumers the new car market is growing increasingly out of reach,” Caldwell said. 

There appears to be a steady stream of affluent consumers willing to commit to car payments that look more like mortgage payments.

Jessica Caldwell

Edmunds’ executive director of insights

[ad_2]

Source link