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Tuesday, 04 January 2022 10:31

Average New and Used Vehicle Monthly Payments Expected to Shatter Records in Q4: Edmunds

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Consumers are spending more than ever to finance new and used vehicle purchases as inventory shortages continue and consumer demand runs high.

According to the car shopping experts at Edmunds, in Q4 2021 the average monthly payment for new vehicles is expected to climb to $636, the highest level Edmunds has on record, compared to $614 in Q3 2021 and $581 in Q4 2020.

 

Edmunds data also revealed the average monthly payment for used vehicles is expected to break a record, climbing to $520, compared to $500 in Q3 2021 and $437 in Q4 2020.

 

Edmunds analysts say the increase in average monthly payments is likely due to an influx of luxury shoppers moving away from leasing toward financing new vehicle purchases: Edmunds data reveals new vehicle lease penetration fell to 23% in December 2021, down from 31% in December 2019.

 

Edmunds data also shows dealer financing increased across the board for luxury brands year over year. For example, in Q4 2021, dealer-financed purchases made up 46% of Audi sales compared to 34% in Q4 2020, and Lexus dealer-financed purchases made up 45% in Q4 2021 compared to 26% in Q4 2020.

 

"Leasing and luxury historically have gone hand in hand, but that trend is drifting away as automakers have less reason to incentivize leasing amid inventory shortages," said Jessica Caldwell, Edmunds' executive director of insights. "Affluent luxury shoppers are likely feeling...


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