New car buyers are shelling out more and more cash in monthly payments, with more than 14 percent of new car payments topping $1,000 in Q3 of the 2022 calendar year.
That’s according to a recent analysis from Edmunds, which recently published an analysis of monthly new car payments. Insights from the report show that the percentage of new car buyers who committed to a monthly payment of $1,000 or more was at 14.3 percent in Q3 2022, the highest level Edmunds had ever recorded. By comparison, 12.2 percent had committed to a monthly payment of $1,000 or more in Q2 of 2022, and 8.3 percent in Q3 of 2021.
Notably, Edmunds also found that more than a quarter (26 percent) of consumers who financed an electric vehicle committed to a monthly payment over $1,000. That’s compared to 24 percent who financed a plug-in hybrid, 14 percent who financed a gasoline-powered vehicle, and 4 percent who financed a non-plug-in hybrid.
The analysis includes a list of brands with the greatest share of monthly payments over $1,000, placing GMC in seventh place with 41 percent of buyers paying more than $1,000 monthly. Overall, large trucks and SUVS were the dominant segments among the list of vehicles that commanded the highest percentage of monthly payments over $1,000. The Chevy Tahoe was particularly noteworthy in this respect, with 49 percent of Chevy Tahoe buyers committing to a monthly payment of $1,000 or more, representing a 3.5-percent market share of all vehicles financed with a monthly payment of $1,000 or more.
According to Edmunds, the rise in new car financing payment prices can be attributed to numerous factors, including low inventory, as well as a consumer shift towards larger vehicles with greater creature comforts and tech features, plus a rise in popularity for electric vehicles. These factors, combined with rising interest rates and lower incentives, have all contributed to the rise.