Vehicle shoppers on a budget are likely to be challenged by predictions of higher auto finance … [+] interest rates, according to a Bankrate.com study. According to a study by Bankrate.com auto loan interest rates were blasted into an upward trajectory by the Federal Reserve’s actions raising interest rates at the fastest pace in 40 years in 2022 and continuing to rise this year. The credit will be tighter and rates will be considerably higher.”Bankrate.com graphic showing upward trajectory of auto loan rates. The volume-weighted average used auto loan rate in December declined slightly to 12.37% which was up a bit more than three full percentage points from a year ago. That change in auto rates causes payments to increase by more than 12%.”Indeed, car shoppers are caught in an environment of conflicting conditions.

Source: Forbes January 09, 2023 14:58 UTC