Average New and Used Vehicle Monthly Payments Expected to Shatter Records in Q4, According to Edmunds

“Leasing and luxury historically have gone hand in hand, but that trend is drifting away as automakers have less reason to incentivize leasing amid inventory shortages,” said Jessica Caldwell, Edmunds’ executive director of insights. “Affluent luxury shoppers are likely feeling comfortable with financing their pricey purchases instead since interest rates are so low.”

Edmunds analysts note that lower annual percentage rate (APR) offers are one bright spot for car shoppers who might feel daunted by fewer discounts and higher prices in the current market.

“If you’re looking to finance your next car purchase, know that interest rates are on your side,” said Ivan Drury, Edmunds’ senior manager of insights. “Make sure to shop around for your auto loan the same way you’d shop around for your vehicle. Automakers and dealers will do what they can to keep customers in their F&I department, which offers a bit more room for negotiation for shoppers in this seller’s market. It doesn’t hurt to ask if a dealership would be willing to beat the rate you’ve been approved for elsewhere. Some dealers might also be willing to offer a longer loan term at a comparable or marginally higher interest rate.”

Quarterly New-Car Finance Data
(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%

Down Payment

$5,780

$4,720

$5,394

Quarterly Used-Car Finance 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%

Down Payment

$3,484

$3,280

$3,511

Quarterly Percentage of Dealer Financed Purchases by Luxury Automaker

Automaker

Q4 2020

Q4 2021

Audi

34%

46%

BMW

33%

42%

Cadillac

36%

44%

Lexus

26%

45%

Mercedes-Benz

29%

44%

About Edmunds
Edmunds guides car shoppers online from research to purchase. With in-depth reviews of every new vehicle, shopping tips from an in-house team of experts, plus a wealth of consumer and automotive market insights, Edmunds helps millions of shoppers each month select, price and buy a car with confidence. Regarded as one of America’s best workplaces 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, PR & Communications
[email protected] 
310-309-4900
http://edmunds.com/about/press 

SOURCE Edmunds

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