Auto loan interest rates soared to their highest levels since 2019 while the average monthly payment for new vehicles passed $700 in the third quarter, according to Edmunds.
Additionally, more than 14 percent of car buyers now have a record-high monthly payment over $1,000.
Edmunds said the average annual percentage rate on financed new vehicles for the third quarter was 5.7 percent — up from 4.3 percent at the same time last year and up from last quarter's 5 percent.
"Since inventory has been so low due to the microchip shortage, there hasn't been a lot of need for incentives," Jessica Caldwell, Edmunds' executive director of insights, told Automotive News.
The industry is dealing with other supply chain issues, she said, noting Ford Motor Co.'s badging shortage last week.
With prices on the rise, the average amount financed for new vehicles also climbed, to $41,347 — up from $38,315 in third-quarter 2021 and up from second-quarter 2022's $40,602.
Along with increased APR and average amount financed, the average monthly payment for a new vehicle in the third quarter was more than $700, with 14.3 percent of consumers taking on a record-high monthly payment of more than $1,000, Edmunds said.
"You might have paid $500 a month for this vehicle last time, and now $700," Caldwell said.