Car prices dip after average monthly payment hits record $777
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The average monthly payment for a new car loan hit a record $777 in December 2022, according to Cox Automotive.
Higher interest rates and an average transaction price (ATP) of $49,507 were behind the increase, which was up 2.1% from November.
The cost pushed the number of weeks a typical American needs to work to pay off their car from 43.3 to 44.
"January is always a very light month for sales transactions, so I am not drawing any conclusions from the data we have seen so far other than to say the market’s biggest problem is affordability driven by the high level of interest rates," Cox Automotive chief economist Jonathan Smoke said last month.