High interest rates, inflated car prices continue to frustrate Arizona car buyers

PHOENIX (3TV/CBS 5) — When buying a car these days, some factors disadvantage consumers considerably.First, there are sky-high auto prices with low down payments. “It’s the fifth straight month that we’re seeing car prices go for at least $40,000 financed for the average vehicle,” Joe Yoon told On Your Side. He’s an expert auto analyst with Edmunds.com, a popular online resource offering auto analysis and car values.Besides a new car’s staggering sticker price, Yoon tells On Your Side that high-interest rates are the second factor that makes a bad situation even worse for car buyers. “The interest rates for this quarter are at 7.1%, which is super painful for buyers right now,” he said.When you crunch the numbers, it’s a one-two gut punch that buries car buyers with substantial monthly payments. “I think the biggest problem is car payments. Again, they are the largest we have seen at $733 a month,” he said.More than two-thirds of Americans say they’re saving less for emergencies because of inflation.There’s also something called “negative equity” that’s impacting consumers, meaning that th …

See the full article on Arizona’s economic indicators, or, read more Arizona real estate investing news. Take your pick!