From The Street, December 20:
The Tesla CEO and others worry that aggressively raising interest rates has helped create an untenable situation in car financing.
The auto sector is one of the victims of the aggressive interest rate hikes by the Federal Reserve to crush inflation, which is at its highest in 40 years.
According to experts, this monetary policy has increased the cost of credit, and more particularly, the cost of car loans. Rising interest rates will make consumers reevaluate their decisions before quickly jumping into a car loan, experts at Edmunds.com recently warned.
"Interest rates for new and used vehicles are skyrocketing", the research firm found.
The average annual percentage rate (APR) for financing a new vehicle purchase climbed to 6.3% in October 2022, compared to 4.2% in October 2021, the highest new vehicle APR since April 2019.
The average APR for a used vehicle purchase climbed to 9.6% in October 2022, compared to 7.4% in October 2021, the highest since February 2010, Edmunds says....
....MUCH MORE
Very related:
"something *extremely* alarming happening in the car market"
