The Detroit News, April 1, 2019 — Higher new-vehicle prices and rising interest rates this year will drive more buyers to used vehicles or hang on to their old cars longer, industry experts believe.
The average new vehicle sold for more than $36,000 in February, according to industry analysis company Edmunds.com. That’s a 29 percent increase from the $28,000 sale price a decade ago, and far outstripped the 6 percent rise in median household income during roughly that same period.
Meanwhile, the average annual percentage rate for new-car loans climbed to 6.26 percent in February after spending most of the last decade below 5 percent, according to Edmunds. That could hurt both automakers and consumers if borrowing costs continue to rise and make cars even less affordable.
