Used cars can be more expensive to finance, as lenders typically impose higher interest rates than new cars as a way to protect themselves.
The article from SlashGear discusses the increasing costs associated with financing used cars, highlighting that the average monthly payment for a used vehicle has risen to $563, marking a significant increase from previous years. This surge is attributed to several factors, including higher used car prices, elevated interest rates, and longer loan terms. The piece notes that the average interest rate for used car loans has climbed to 11.18%, the highest in over a decade, which, combined with the rising prices of used vehicles, has led to a situation where buyers are facing monthly payments that are nearly as high as those for new cars. The article also touches on the impact of these trends on consumers, suggesting that the increased financial burden could affect affordability and lead to changes in buying behavior.
Business & Finance
Mon, April 28, 2025
