CHARLOTTE, N.C. — Why are lower car prices not a relief for consumers?
Let's connect the dots.
The pandemic, and supply chain issues, caused folks to pay well over the sticker price just to secure the car or truck they wanted. But with supply finally catching up to demand, Morgan Stanley's chief auto analyst says deflation may be arriving for new cars.
However, rising inflation now causing new car loans to shoot up. Edmunds data shows it's up nearly 1.5% from a year ago. And the federal reserve is expected to continue raising interest rates. So you can expect the rates for auto loans to continue to rise as well.
That means while overall car prices should fall, monthly car payments might not. Nearly 15% of all new buyers have agreed to monthly loan payments of $1,000 or more.
MORE ON WCNC
FREE PODCASTS
Flashpoint is a weekly in-depth look at politics in Charlotte, North Carolina, South Carolina, and beyond with host Ben Thompson. Listen to the podcast weekly.
SUBSCRIBE: Apple Podcasts || Spotify || Stitcher || Google Podcasts
All of WCNC Charlotte's podcasts are free and available for both streaming and download. You can listen now on Android, iPhone, Amazon, and other internet-connected devices. Join us from North Carolina, South Carolina, or on the go anywhere.
Locked On is the leading podcast network for local sports and is owned by WCNC Charlotte's parent company TEGNA.
Listen to Locked On here.
All of WCNC Charlotte's podcasts are free and available for both streaming and download. You can listen now on Android, iPhone, Amazon, and other internet-connected devices. Join us from North Carolina, South Carolina, or on the go anywhere.
Wake Up Charlotte To Go is a daily news and weather podcast you can listen to so you can start your day with the team at Wake Up Charlotte.
SUBSCRIBE: Apple Podcasts || Spotify || Stitcher || TuneIn || Google Podcasts
All of WCNC Charlotte's podcasts are free and available for both streaming and download. You can listen now on Android, iPhone, Amazon, and other internet-connected devices. Join us from North Carolina, South Carolina, or on the go anywhere.