Monthly car loan payments up to $700 in July

For the first time ever, monthly car payments topped $700 in July.

Dealerships are offering less and less discounts on vehicles these days as prices continue to rise and interest rates on loans rise steadily, said Thomas King of J.D. Power in a report in TheStreet on Wednesday, July 27. King is the president of the data and analytics division of the Michigan-based data analytics firm.

“The average monthly finance payment in July is on track for a record high of $708, up $81 from July 2021,” he said.

Record monthly payments come from consumers looking for bigger vehicles and longer loans, said Greg McBridechief financial analyst for a financial data company The bank rate.

“Limited supply on dealer lots has driven sticker prices and loan amounts to levels never seen before,” McBride noted.

Related: New car payments top $1,000 for 12% of buyers amid supply chain grunts

Earlier this month, PYMNTS reported that the average monthly payment for new luxury cars has increased, with more than 12% of consumers financing a car paying more than $1,000 per month. The number represents a 7.3% higher payout from June 2021.

The increase has not tamed the appetite of luxury car buyers. But that won’t be doable for everyone, with Jessica Caldwell, executive director of ideas for car buying guide Edmunds, noting that many consumers will find new cars beyond their financial reach.

Earlier this month, CNBC reported that the average annual percentage rate is now 5% for a new auto loan for the first time since the start of 2020. This is up from 4%. , and the report says consumers will now pay $1,324 more in interest over the term of a 72-month $40,000 car loan.

Data from the US Bureau of Labor Statistics indicates that new car prices are up 12.6% from a year ago, while used cars are 16.1% more expensive.