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
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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.
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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.
Vehicles for sale at the Mercedes-Benz of Louisville dealership in Louisville, Kentucky, U.S., on Tuesday, Dec. 7, 2021. U.S. car sales inched higher, and inventories grew in October, a sign that some of the worst of the shortages hampering auto prod (Luke Sharrett/Bloomberg via Getty Images / Getty Images)
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.
Ford F-150 pickup trucks at a dealership in Colma, California, US, on Friday, July 22, 2022. Photographer: David Paul Morris/Bloomberg via Getty Images (Getty Images)
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.
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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.
RICHMOND, CALIFORNIA - MAY 06: Used cars for sale are displayed on the sales lot at K&L Auto Expert on May 06, 2022 in Richmond, California. Wholesale used-car prices continue to fall with a 1 percent drop from March to April. Prices have fal (Photo by Justin Sullivan/Getty Images / Getty Images)
The new-car market has been hit hard by the semiconductor shortage and supply chain disruptions for over a year, resulting in lower production and higher prices.
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Meanwhile, the prices of used cars and trucks are about 7.8% higher than they were in the same month of 2021. On a monthly basis, they actually dropped 0.4%, however.