Average car prices remain high this year
If you're waiting for a better time to buy a car, you may have to keep waiting for a while.
COLUMBIA, S.C. (WOLO)— If you’re waiting for a better time to buy a car, you may have to keep waiting for a while.
Continued auto parts shortages are driving average car prices higher and higher.
Meanwhile, the Federal Reserve’s interest rate hikes are making it more and more expensive to finance a vehicle.
Plus, car companies and dealers have less incentive to take steps to bring down costs because demand is still vastly greater than supply.
According to Edmunds.com, the average new car loan interest rate hit 5.7% in the third quarter of 2022. That’s the highest it’s been since 2019.
The average monthly payment in the third quarter was more than $700, compared to $630 this time last year.
Analysts don’t expect the car market to return to normal anytime soon.