People Are Paying Bigger Down Payments for New Vehicles, According to Edmunds

Consumers in the market for a new car during the pandemic aren’t shying away from making bigger down payments than usual.

According to the car shopping experts at Edmunds, the average down payment for a new vehicle climbed to $4,457 in the third quarter, compared to $3,891 last quarter and $4,045 a year ago.

Edmunds data also shows that the average transaction price (ATP) for new vehicles rose significantly in the third quarter. Edmunds estimates that the ATP in Q3 climbed to $39,303, compared to $38,893 last quarter and $37,207 in Q3 of 2019.

Due to increases in average down payments and average transaction prices for new vehicles, Edmunds data shows that average loan terms and monthly payments decreased slightly in the third quarter compared to the second quarter.

The average annual percentage rate (APR) for new vehicles saw a small lift, hitting 4.6% in Q3 compared to 4.2% in Q2.

Edmunds analysts note that some of these trends are trickling down into the used market as well. Edmunds data shows that the average down payment for a used vehicle also rose in the third quarter, climbing to $3,306 compared to $2,937 in the second quarter and $2,636 a year ago.

Copyright Today’s Credit Unions