New car payments average $702 per month. Analyst explains why?

By The Exchange Team

Those looking to purchase a new automobile may need to make more room in their budgets.

As per new data from Edmunds, the average new car loan is 70.4 months and monthly payments have topped $700 for the first time.

It echoes similar findings in a joint forecast released in late July by J.D. Power and LMC Automotive.

Why car buyers spend more?

J.D. Power/LMC Automotive forecasts the average July new-car transaction at $45,869. The June record was $45,988.

Factors for Higher  Costs.

1. Higher interest rates for auto loans 2. Supply chain constraints 3. Vehicle popularity 4. Fewer incentives

How to save money?

To begin, remember that individuals with higher credit scores can obtain the best loan terms.

How to save money?

Realistically assess how much car you need. Some cars have pricey features you can do without.