If it is seems like there’s hardly a difference between the monthly payment on a new and a used vehicle, you’re right. Currently there’s just an 18% difference between the two averages — the smallest gap ever.
The average transaction price for a new vehicle is more than $42,000, which is a new record. Unsurprisingly, that has trickled down to the used vehicle numbers as well. Edmunds expects it to climb to a record high of $27,306, compared to $25,854 in Q2 2021 and $21,697 in Q3 2020.
“These high prices combined with higher interest rates on the used side have shrunk the difference between new and used monthly payments more than we’ve ever seen before. Consumers considering a used vehicle rightfully might pause at the fact that today’s used monthly payment is nearly the same as a new monthly payment five years ago — particularly when they factor in the maintenance that might happen sooner rather than later,” said Jessica Caldwell, Edmunds’ executive director of insights
Read the article at The Detroit Bureau.
