Average monthly payments for new and used vehicles set to break records in Q4, Edmunds says


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“Rental and luxury have historically gone hand in hand, but this trend is receding as automakers have less reason to encourage rental when inventory runs out,” said Jessica caldwell, Executive Director of Edmunds Ideas. “Affluent luxury buyers probably feel comfortable financing their expensive purchases instead, because interest rates are so low.”

Edmunds analysts note that the lower annual percentage rate (APR) offers are a bright spot for car buyers who might feel intimidated by fewer discounts and higher prices in today’s market.

“If you are looking to finance your next car purchase, know that interest rates are on your side,” said Ivan Drury, Senior Director of Ideas for Edmunds. “Make sure you shop for your car loan the same way you shop for your vehicle. Car manufacturers and dealers will do everything possible to keep customers in their F&I department, which provides a little more negotiating room for buyers in this area. seller’s market. It doesn’t hurt to ask if a dealership would be willing to beat the rate you were approved for elsewhere. Some dealers may also be willing to offer a longer loan at a comparable or slightly higher interest rate. “

Quarterly data on new car financing
(Averages)


Q4 2021

Q4 2020

Q3 2021

Term

69.9

69.9

70

Monthly payment

$ 636

$ 581

$ 614

Amount financed

$ 39,017

$ 35,335

$ 37,479

APR

4.10%

4.60%

4.40%

Deposit

$ 5,780

$ 4,720

$ 5,394

Quarterly Used Car Financing Data
(Averages)


Q4 2021

Q4 2020

Q3 2021

Term

70

68.1

69.6

Monthly payment

$ 520

$ 437

$ 500

Amount financed

$ 29,913

$ 24,384

$ 28,634

APR

7.40%

7.80%

7.40%

Deposit

$ 3,484

$ 3,280

$ 3,511

Quarterly Percentage of Luxury Car Manufacturer Dealer Funded Purchases

Car manufacturer

Q4 2020

Q4 2021

Audi

34%

46%

Bmw

33%

42%

Cadillac

36%

44%

Lexus

26%

45%

Mercedes-Benz

29%

44%

On Edmunds
Edmunds guides online car buyers from research to purchase. With in-depth reviews of every new vehicle, buying advice from an in-house team of experts, as well as a wealth of consumer and automotive market information, Edmunds helps millions of buyers each month choose , evaluate and buy a car with confidence. Considered one of America’s best places to work by Fortune and Great Place to Work, Edmunds is based in Santa Monica, California. follow us on Twitter, Facebook and Instagram.

CONTACT:
Talia James-Armand
Associate Director, Public Relations and Communications
[email protected]
310-309-4900
http://edmunds.com/about/press

SOURCE Edmunds

Related links

http://www.edmunds.com


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