Monthly car loan payments hit all-time high with those paying $1,000 a month DOUBLING in the space of a year

• 
  The percentage of people taking out new car loans and paying $1,000 in monthly payments has almost doubled from 7% to 12.7% over the last 12 months
• Average monthly payments on new car loans are at a record high of $686
• Used car market sees average monthly payments at $554, up 12% year-on-year
• Pandemic supply-chain problems are partly to blame with the shortage of new cars leading to price hikes on the forecourt 
• Monthly interest payments also shot up after the Federal Reserve raised rates

By JAMES GORDON FOR DAILYMAIL.COM 

A record number of Americans are paying at least $1000-a-month to finance their new cars as interest rates soar and supply chain issues caused by the pandemic.

At least 12.7 percent of new car buyers who took out loans last month are making monthly payments of at least $1,000, according to car-shopping site Edmunds.

This time last year, the figure was closer to 7 percent. In 2019 the level was nearer 5 percent. More than a decade ago, in June of 2010, just 2 percent were paying such sums.

Monthly payments on car loans are also at a record high with the average for June at $686.  That figure is up is up by 4 percent from January of this year and 13 percent from July 2021.+4View gallery

A record-breaking 12.7 percent of new-car buyers who took out loans last month are making a monthly payment of at least $1,000. In 2019 the level was closer to 5 percent. In 2013 fewer than 2 percent were paying such sums. Source: Edmunds+4View gallery

Monthly payments on car loans are also at a record high with the average for June at $686. In the used car market, the average monthly payment was $554 a month. Source: Edmunds

Things are not much better in the used car market either with average monthly payments also at near record levels. In June, the average monthly payment for a used car was $554 – an increase of 12 percent from this time last year. 

The cost of buying a new vehicle is much higher than what it was before the pandemic, due to pandemic-related supply chain issues which created a shortage of new cars. 

Meanwhile, interest payments have also shot up after the Federal Reserve raised rates. 

‘Low interest rates used to be one of few reprieves for car shoppers amid elevated prices and supply shortages. But the Fed rate hikes this year are making finance incentives far costlier for automakers, and consumers are starting to feel the pinch,’ said Jessica Caldwell, Edmunds’ executive director of insights……..more here

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