Examining the steep rise in monthly auto loan payments
According to Moody's Analytics, monthly auto loan payments for vehicles increased about 40% from pre-pandemic levels. Where is this increase coming from?
iSeeCars.com Executive Analyst Karl Brauer joins Wealth! to give insight into the inflation of monthly payments for auto loans and the impact it has on consumers:
"So automakers believe it or not, have kind of made out pretty well. And you've seen a lot of their numbers because they're selling a lower volume, but they're selling it with more profit per unit. And I think they discovered this and they kind of like it. Now we're seeing incentives come back. They're kind of getting pulled back into the we got to produce more cars and have more options on the dealer lots. So that should start to drive prices down. We have seen them come off their highs, but I think we're a long way from getting back to pre-pandemic levels because we had this long buildup of supply shortage and demand build..."
For more expert insight and the latest market action, click here to watch this full episode of Wealth!
This post was written by Nicholas Jacobino
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