![]() ![]() However, that trend is reversing and consumers are paying more than they ever have to finance new and used vehicles.Īccording to Edmunds data from November 2022, the average interest paid over the life of a new car loan climbed to an all-time record of $8,436, and the average interest paid over the life of a used car loan climbed to an all-time record high of $10,204.Ĭonsumer shopping tip: Think of the total amount of interest that you'll be paying over the course of your loan as a stand-alone value that's a separate cost on top of your vehicle purchase - it could make a difference of up to thousands of dollars. The Ugly: Interest rates are skyrocketing, making financing increasingly more expensive for consumers.Įdmunds experts note that lower interest rates (which were often subsidized by automakers) and longer loan terms helped Americans buy the bigger, feature-heavy vehicles that they love over the past decade. Edmunds data reveals that the average monthly lease payment climbed to $583 in November 2022 compared to $471 in November 2019.Įdmunds data reveals that lease penetration fell to 17.4% in November 2022 compared to 28.3% in November 2019, and Edmunds experts expect the gap to continue widening.Ĭonsumer shopping tip: Before you lease make sure you weigh the total cost of the lease against all other options including purchasing new, used, or certified pre-owned (CPO). And make sure to read the fine print before getting too invested in a lease deal: Most lease promotions today have extremely restrictive terms that did not exist previously, such as requiring lower mileage caps or limiting offers to existing customers with a trade-in. The Bad: Leasing will continue to be out of reach for consumers as deals grow harder to find.Įdmunds analysts say that leasing, once a popular option for American consumers, has grown increasingly more expensive as inventory is slow to recover and interest rates remain high. And if you have a trade-in, shop around for appraisals on sites like Edmunds to maximize its value before prices drop further. If you're a cash buyer, you're going to be in a good position to make a purchase. According to Edmunds data from November 2022:Ĭonsumer shopping tip: If you've been sitting out of the market in the past year due to higher prices or lower selection, now might be a great time to jump back in. ![]() In November 2022, the average MSRP dropped to $47,696.Įdmunds experts note that the drop in price is concentrated across larger trucks, SUVs and luxury vehicles, whereas there is still increased demand for lower-priced mainstream vehicles. The Good: New vehicle prices are expected to cool, with average transaction prices dipping below MSRP for the first time in more than a year.Įdmunds data reveals that the average transaction price (ATP) for a new vehicle hit a record high of $47,681 in November 2022 - but this was also the first time since July 2021 that the ATP came in below the average MSRP. "Although inventory levels have been slowly picking up toward the end of the year and should help meet pent-up consumer demand through 2023, a number of headwinds such as rising interest rates, inflation and economic uncertainty are likely to hinder a speedy recovery."Įdmunds experts have put together their list of the three biggest industry trends that they predict will shape the road ahead in 2023, which they've separated into three categories - the good, the bad and the ugly - along with some direct consumer shopping tips. Sales were severely dampened by limited inventory, but automakers and dealers were able to rely on a dichotomy of affluent car shoppers and individuals making necessity-based purchases to keep things afloat - and the vehicles that they could sell commanded some hefty price tags," said Jessica Caldwell, Edmunds' executive director of insights. "2022 was a mixed bag for the entire automotive industry. The Good: New vehicle prices are expected to cool, with ATPs dipping below MSRP for the first time in more than a year. With Price Promise(R), shoppers can buy smarter with instant, upfront prices for cars and trucks currently for sale at over 10,000 dealer franchises across the U.S. Car-buying platform serves nearly 20 million visitors each month.
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