Auto Loan Rates Are Rising — but There's Still Some Good News for Car Shoppers
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Car buyers will likely have more options this fall, but it could be an extra expensive time to purchase thanks to the highest auto loan rates in years.
Experts in the automobile industry say the market is shifting in response to the Federal Reserve raising interest rates to combat inflation.
The Fed's rate hikes have caused the average interest rate for new vehicle financing to increase to 5.7% in the third quarter of 2022, up from 4.3% this time last year and the highest level in three years, according to Edmunds.
Heightened borrowing costs will price many consumers out of purchasing new vehicles, experts say.
"High prices and rising interest rates are dealing consumers a one-two punch by catapulting monthly payments into a new realm," Jessica Caldwell, executive director of insights at Edmunds, said in a release.
