Auto payments near record high: Here's what to know

Auto Price Trends - Average transaction price for new cars in October was just under $50,000, roughly $11,000 more than in 2018, a 295% increase [2] - Average monthly new vehicle auto loan payment is more than $750 [2][3] - Used vehicle monthly payments are about $150 to $170 less than new vehicles, placing them in the $570-$580 range [6][7] - Auto prices have plateaued but show no indication of decreasing [7] Factors Driving Price Increases - Automakers are focusing on higher trim levels with more technology and features, as consumers prefer these [3][4][9] - Automakers are facing higher costs for raw materials, labor contracts, and tariffs, impacting profit margins [5] Congressional Scrutiny - Senator Ted Cruz plans to examine auto affordability in a hearing next month (January) [6] Consumer Behavior - Consumers are often convinced they want the latest features in new vehicles, leading them to choose higher trim levels [9] - Very few people order base model vehicles [4][10]