(ZEROHEDGE) – The share of new auto loans with monthly payments exceeding $1,000 has hit a new record as borrowing costs continue to rise and new car prices remain elevated. Consumers are taking on too much auto debt, which could have disastrous consequences during the next economic downturn.
Edmunds' second-quarter vehicle transaction data shows that 17.1% of consumers who financed a new car signed on for four-figure monthly payments. This now stands at a record high, up from 12.2% a year earlier. Before Covid, the figure was around 4.3%.
Average monthly payments also reached a new record of $733. That compares with $730 in the first quarter and $678 in the second quarter of 2022. Buyers were financed with an average APR of around 7.1%, the highest since the fourth quarter of 2007.
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