The average car is getting less affordable for the average person, with typical monthly payments hitting all-time highs.
According to a report by Cox Automotive and Moody’s Analytics, the affordability of new vehicles continued to climb in May for the fourth month in a row, with monthly car payments averaging $712 per month.
“Unfortunately for the segment of the population that probably needs it the most, it’s getting more and more out of reach,” Ivan Drury, senior manager of insights at the car buying expert Edmunds, told NPR of the difficulty of buying a car.
Consumer Price Index data from May showed that over the previous 12 months, new car prices have gone up 12.6%, This and rising interest rates have made monthly payments higher than ever.
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