Typical monthly payment for a new vehicle hits record $743

[mystery-ak]

September 15, 2022 5:10pm EDT
Typical monthly payment for a new vehicle hits record $743
The median number of weeks of income needed to buy a new car also went up

By Aislinn Murphy FOXBusiness

Typical monthly payments for a new car are getting steeper, according to the latest data from Cox Automotive and Moody's Analytics.

The average new car payment hit a record high of $743 in August, the Cox Automotive/Moody's Analytics Vehicle Affordability Index released Thursday showed. That figure is up 1.4% from $733 in July.

Kelly Blue Book reported earlier in the week that the average purchase price in the U.S. for a new vehicle rose for a fifth consecutive month, hitting a record-high of $48,301 in August. It climbed 10.8% from August 2021.

According to the Cox Automotive/Moody's Analytics data, a median of 42.6 weeks of income was necessary to purchase a new car in August, compared to 37.7 weeks at the same time last year.

Increased interest rates have contributed to the average new vehicle being less affordable, the Cox Automotive/Moody's Analytics report said.

The prices of new vehicles have continued to climb, both month-over-month and year-over-year, according to the latest consumer price index data put out Tuesday by the U.S. Department of Labor.

From a year ago in August, the average cost of new vehicles went up 10.1%, with the prices of new cars and new trucks rising 10.9% and 9.8%, respectively. The prices of new vehicles increased 0.6% from July, according to the unadjusted data.


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https://www.foxbusiness.com/economy/typical-monthly-payment-new-vehicle-hits-record-743-dollars

[roamer_1]

HAHAHAHA! I would never pay 700 bucks a month for a dang car. Heck, most cars I've owned I didn't pay 700 bucks total. What is wrong with people?

[Smokin Joe]

HAHAHAHA! I would never pay 700 bucks a month for a dang car. Heck, most cars I've owned I didn't pay 700 bucks total. What is wrong with people?

I agree. Insanity.

[sneakypete]

I bought a 2022 Camry a couple of months ago with no money down,and didn't even pay for the license plate or the sale taxes,and my payment is "only" around $570 a month.

I think this survey only contacted the SUV and 4x4 crowd. IIRC,the CHEAPEST Jeep down-sized Wagoneers started at around 35 grand.

BTW,for those of you who  may be interested,mine is the 4 cylinder and has stoopid power thanks to the 8 speed auto trans,and the last time I checked I am getting 42.6 miles per gallon.

My old 03 Ranger with the 4 cylinder was only getting around 18 mpg. ALL my doctor appointments are out of town and the last 3 trips I made with the  Ranger ended with my and the Ranger having to ride home on a roll-back. I didn't even make it to the doctor's office the 3rd time. I ended up having to call a taxi to come get me and take me to the doctor,and then call a rollback to come get me and the Ranger again.

I bought the new Camry the next day,and it was the ONLY new vehicle the dealer had that sold for under 30 grand.

Was looking for a white 4 cylinder extended cab 2wd pu with a short bed,auto trans,ac,etc,etc,etc,and the closest thing they had to it was a maxed-out black V-6 4x4 that was a 2018 model.

Went to the Honda dealer first,and he didn't have a single new Honda on the lot. He told me "We have 22 on order that are supposed to come in this month,and  we will be happy to put your name on the waiting list in case someone backs out."

Same story with the Nissan dealer,so I went to the Ford dealer and didn't even get out of my truck because all he had new were 1 ton and larger commercial trucks.

I had stopped to LOOK at the new Jeeps a week earlier,and the Jeep dealer had a good selection. The thing is the  prices seemed to all start at around 35 grand,and no way in hell was I willing  to pay that much for what amounts to an econo-box with a 35 grand price tag.

Don't even think about trying to get a discount,either. Since they are selling them before they even get them in,they ain't dealing.

I only found out about the white Camry after telling the saleslady I wasn't going to buy anything I couldn't get in or out of without bumping my head,and then she told me they had ONE new Camry that was white,which was what I wanted,and that the sales manager had been driving it,and that it had around 500 miles on it. Which *I* took to be a positive thing because you KNOW that if it had any faults,the sales manager would have damn sure had them fixed.

I did get a 500 dollar veterans discount,though. Which surprised me because I didn't even know there was such a thing.

Only thing I don't like about the car is the black upholstery. It's fabric instead of fake leather,so it's not that hot,but I just hate black upholstery.

[sneakypete]

HAHAHAHA! I would never pay 700 bucks a month for a dang car. Heck, most cars I've owned I didn't pay 700 bucks total. What is wrong with people?

@roamer_1

I'd pay that much for a big truck if I was still able to work and needed a truck to do the job. That way I could write off some of the expenses,plus needing it to make the money in the first place.

[sneakypete]

I agree. Insanity.

@Smokin Joe

There is a couple in their 30's that live maybe 10 miles from me that bought a lot right along side the 4 way I use to get to Hardees.

They also bought a new Modular Home to sit on the lot,and had a 2 car garage built in the back yard. They also have TWO brand new Jeep Wagoneers that they leave parked outside,so I have no idea what they keep in the garage.

I have now noticed they have bought two used compact cars to drive back and forth to work,and leave the Jeeps parked outside.

I don't know what kind of jobs they have,but they damn sure earn more than I did because they HAVE to be paying at least 1500 a month in Jeep payments,in addition to the house payments.

Although,they may have gotten the house and Jeep money from the deaths of one or both parents. LOTS of money to be made these days selling off estates located in cities.

IF this is what they did,they are even bigger fools than I thought at first.

Keep in mind that they both PROBABLY work in the closest city,which is about 40 miles away.  That is a MINIMUM of 80 miles per day x 5 days a week,just to go back and forth to work. They had better hope they have good warranties on those Jeeps. Yeah,I know they PROBABLY bought the used economy cars to save putting miles on the Jeeps,but used cars won't last long when you put a minimum of 80 miles a day on them.

Plus the used cars include additional taxes and insurance fees that have to be paid.

[mountaineer]

The husband of a friend wanted to find a used pickup - Colorado or something similar. All the used ones were priced higher than a new one, so he bought a new, loaded one. 

[sneakypete]

The husband of a friend wanted to find a used pickup - Colorado or something similar. All the used ones were priced higher than a new one, so he bought a new, loaded one. 

@mountaineer

You just KNOW the US economy is getting ready to crash when the US Automakers start only producing and selling automobiles and pickup trucks on demand. This means they have made plans to NOT get caught with multi-millions in cash value of cars and trucks they can't sell because we will be going though another Economic Depression and people won't have the money to buy any of them.

The dealers know too,but they ain't talking.

How could anything be more obvious than this?

Frankly,I am shocked that a bank lent me the full purchase price of the new Camry. I SUSPECT the banks doing this have some sort of "back door agreement" to not talk about this unless Trump or some other Republican (real or alleged) is elected.

Banks are just not in the business of taking financial risks like this unless they have some sort of gooberment guarantee.

[roamer_1]

@roamer_1

I'd pay that much for a big truck if I was still able to work and needed a truck to do the job. That way I could write off some of the expenses,plus needing it to make the money in the first place.

@sneakypete

NOPE. Spent most my life in trucks of all sorts. 35-40k miles a year on the road. Never bought new. Always bought broken and restored em, pennies on the dollar... Heck, I don't remember but maybe two loans on rigs my whole life long, and neither of them were new either.

I don't recall perfectly, but I can't remember paying more than $3500 bucks for a truck ever.
Now, the one I paid the 3500 for was a shortbox 4x4 that wound up jacked all the way up on 44's with a ground-pounder motor, and all the stuff... So I had more than that in it before it was done. But I paid it off right away - just did a loan over the phone with my banker because I found it out of town and didn't have money in the checkbook at the time.

But yeah... trucks are around a dime a dozen and cheap if they're broken. I would never pay hard for em, ever.

[roamer_1]

TWO brand new Jeep Wagoneers

@sneakypete

Well there you go...
One to bury and another to cover it up with... 
 

[sneakypete]

@sneakypete

NOPE. Spent most my life in trucks of all sorts. 35-40k miles a year on the road. Never bought new. Always bought broken and restored em, pennies on the dollar... Heck, I don't remember but maybe two loans on rigs my whole life long, and neither of them were new either.

I don't recall perfectly, but I can't remember paying more than $3500 bucks for a truck ever.
Now, the one I paid the 3500 for was a shortbox 4x4 that wound up jacked all the way up on 44's with a ground-pounder motor, and all the stuff... So I had more than that in it before it was done. But I paid it off right away - just did a loan over the phone with my banker because I found it out of town and didn't have money in the checkbook at the time.

But yeah... trucks are around a dime a dozen and cheap if they're broken. I would never pay hard for em, ever.

@roamer_1

You are talking about "play toy" trucks,not work trucks.

If you are operating a commercial business,you have to have trucks that are seen as "respectable" tools by the customers,who depending on what kind of service you are selling,may be needing to sign contracts for thousands of dollars to be put into your pocket.

Show up at their doors while driving something that looks ragged or home-built,and you are not going to get that contract signed.

BTW,the most I ever paid for a truck was 18 grand,and it was a 2006  3/4 ton extended cab 4x4 GMC turbo-diesel with a genuine Cummings 6 speed auto trans. Truck had right at 18k miles on it at the time.

I could sell it tomorrow for more money than I paid for it.

[roamer_1]

@roamer_1

You are talking about "play toy" trucks,not work trucks.

If you are operating a commercial business,you have to have trucks that are seen as "respectable" tools by the customers,who depending on what kind of service you are selling,may be needing to sign contracts for thousands of dollars to be put into your pocket.

Show up at their doors while driving something that looks ragged or home-built,and you are not going to get that contract signed.

Wrong, @sneakypete
I am talking business... Lawn and landscaping... 3/4T heavies or 1T... with 2T or 5T trucks and trailers... and later house painting and prefinish painting... That was all vans and minivans... 9 crews... Oh, and the pooter shop always had 2 vans too.

If they looked shabby I threw a coat on em. It ain't hard.