The average number of weeks of income it takes to buy a new car has also increased.
Typical monthly payments for a new car are getting steeper, according to the latest data from Cox Automotive and Moody’s Analytics.
The average payment for a new car hit a record high of $743 in August, according to the Cox Automotive/Moody’s Analytics Vehicle Affordability Index. released on Thursday showed. this figure increased by 1.4% compared to $733 in July.
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Earlier this week Kelly Blue Book reported that average purchase price in the US, the price of a new car rose for the fifth month in a row, hitting a record high of $48,301 in August. It is up 10.8% compared to August 2021.
Buying a new car in August required an average income of 42.6 weeks compared to the previous month, according to Cox Automotive/Moody’s Analytics. 37.7 weeks at the same time last year.
According to a report by Cox Automotive/Moody’s Analytics, higher interest rates have made the average new car less affordable.
According to the agency, new car prices continue to rise both on a monthly and year-on-year basis. latest CPI data published on Tuesday by the US Department of Labor.
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Compared to last year, the average cost of new cars rose by 10.1% in August, with prices for new cars and new trucks up 10.9% and 9.8%, respectively. New car prices rose 0.6% from July, unadjusted.
The new car market has been hit hard by semiconductor shortages and supply chain disruptions for more than a year, resulting in lower production and higher prices.
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Meanwhile, prices for used cars and trucks are about 7.8% higher than in the same month of 2021. However, on a monthly basis, they actually fell 0.4%.
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