Rising car prices drive U.S. consumers into deeper debt
STORY: Rising prices for new cars and trucks are driving U.S. consumers deeper into debt.
Credit-monitoring company Experian on Thursday said the average car loan for a new vehicle hit a record high of over $40,000.
Vehicle demand is high, but automakers say they still cannot keep pace because of shortages of semiconductors and other supply chain snarls.
Market research firm J.D. Power this week reported the price of the average new car or truck hit a record $46,259 in August.
Despite the Federal Reserve's efforts to cool the economy by raising interest rates, prices of new vehicles in the United States have been rising faster than the overall inflation rate for much of the year.
Soaring prices force many to take on greater debt, and as a result, pay out more per month.
And the average monthly payment for those with an auto loan hit $667 in the second quarter up almost 15 percent from a year earlier.
Overall, the average amount borrowed rose just over 13 percent.
That data is from Experian's latest report on the auto finance market.
These trends may explain why so many consumers are opting for a used car instead, which - according to Experian - accounted for almost 62 percent of all vehicle loans during the second quarter.
