New Vehicle Prices Climb to Highest Level of the Year in April, According to Edmunds Analysis
Experts say it keeps getting harder for shoppers to afford a new car as prices continue to rise and interest rates stay high
SANTA MONICA, Calif., May 1, 2019 /PRNewswire/ -- Rising prices and tightened credit conditions continued to place pressure on the new vehicle market in April, according to the car shopping experts at Edmunds. The average price of a new car is expected to climb to $36,718 in April, the highest level seen so far in 2019. April also marked the fourth straight month of the year that interest rates hovered above 6% — according to Edmunds data, the annual percentage rate (APR) on new financed vehicles is expected to average 6.28% in April compared to 5.58% last year and 4.40% five years ago.
"April sales were a bit dampened by the harsh financing conditions we've been seeing in the new car market," said Jessica Caldwell, Edmunds' executive director of industry analysis. "Shoppers are really starting to feel the pinch as prices continue to creep up and interest rates loom at post-recession highs."
According to Edmunds data, zero percent finance offers continued to be tough to come by in April, constituting only 3.20% of financed transactions in 2019, compared to 7.64% in 2018 and 7.38% five years ago. But Edmunds experts note that this might change heading into the summer holiday selldown season.
"Slower April sales didn't do much to eat into the industry's mounting inventory levels, so we might start to see manufacturers and dealers begin to loosen the reins on incentives closer to Memorial Day weekend in an attempt to rekindle demand," said Caldwell.
More insight into recent auto industry trends can be found in the Edmunds Industry Center at https://www.edmunds.com/industry/insights.html.
New-Car Finance Data
April 2019 |
April 2018 |
April 2014 |
|
Term |
69.44 |
68.99 |
66.51 |
Monthly Payment |
$553 |
$533 |
$474 |
Amount Financed |
$31,914 |
$31,181 |
$27,580 |
APR |
6.28 |
5.58 |
4.40 |
Down Payment |
$4,383 |
$3,980 |
$3,564 |
Average Transaction Price |
$36,718 |
$36,094 |
$32,206 |
Used-Car Finance Data
April 2019 |
April 2018 |
April 2014 |
|
Term |
67.4 |
67.1 |
65.0 |
Monthly Payment |
$411 |
$398 |
$371 |
Amount Financed |
$22,034 |
$21,620 |
$20,026 |
APR |
8.83 |
8.30 |
7.70 |
Down Payment |
$2,742 |
$2,633 |
$2,381 |
About Edmunds
Edmunds guides car shoppers online from research to purchase. With in-depth reviews of every new vehicle, shopping tips from an in-house team of experts, plus a wealth of consumer and automotive market insights, Edmunds helps millions of shoppers each month select, price and buy a car with confidence. Regarded as one of America's best workplaces by Fortune and Great Place to Work, Edmunds is based in Santa Monica, California, and has a satellite office in Detroit, Michigan. Follow us on Twitter, Facebook and Instagram.
CONTACT:
Talia James-Armand
Senior Manager, Public Relations
[email protected]
310-309-4900
http://edmunds.com/about/press
SOURCE Edmunds
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