There is no doubt that the number of electric vehicles sold in the USA is increasing. We believe there is a mix of buyers buying for the environment and those buying for status. However, a growing number of these buyers are committing to paying more than $1,000 a month. A new report from Edmunds shows that in the third quarter of 2022, a record-breaking 14.3% of U.S. consumers had monthly payments of over $1,000 for a new car.
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Edmunds took a closer look at shared monthly payments of more than $1,000, and here are its findings. The results also include non-electric vehicles.
- More than 1 in 4 consumers who financed an EV committed to paying more than $1,000 a month. 26 % of consumers who bought an EV committed to paying more than $1,000 per month, compared to 24% of consumers who bought a hybrid vehicle. 14% finance a pure petrol car and 4% finance a hybrid car. .
- Two major brands known for their popular truck deals are among the top 10 brands that have received the most monthly payments in excess of $1,000. While luxury brands dominate the list, GMC doesn't. 7th place with 41% of buyers paying more than $1000 monthly and Aries took first place. #10, with 36% of your customer base paying over $1,000 monthly. The full list of brands, ranked by share of monthly payments over $1,000, is below.
- Large trucks and large SUVs dominated the top 10 model list, earning the lion's share of monthly payments over $1,000. The Ford F-150, Ram 1500, and Chevrolet Tahoe had the highest percentage of monthly payments over $1,000. The Ford F-150 accounted for 5.6% of all new auto loans originated in the third quarter with monthly payments greater than $1,000. A list of the top 10 models ranked by percentage of monthly payments over $1,000 is below.
- States where consumers prefer to buy big trucks lead the nation in most monthly car payments over $1,000 (available infographic). Wyoming, Texas, and Utah had the highest percentages of new car buyers who accepted a monthly payment greater than $1,000 (25.7%, 20.8%, and 19.1%, respectively). For the full list of states ranked by percentage of monthly payments over $1,000, see the Edmunds infographic.
"Despite worrying macroeconomic conditions, Americans are spending more than ever on new car purchases," said Jessica Caldwell, Edmunds chief valuation officer. “Persistent inventory shortages are partly to blame, but the trend also reflects consumer preferences. Over the past decade, we've seen Americans adopt a "bigger is better" mentality, striving for larger vehicles with more amenities, high-tech features, and more recently, electrified powertrains, but all at an added cost. . Rising interest rates combined with rising prices have pushed monthly payments to new heights.”
"The drop in rental incentives is another factor driving payments higher," said Ivan Drury, Edmunds chief information officer. “As leasing becomes more expensive, more affluent consumers are choosing to finance luxury brands and larger vehicles. With little leasing or financing easing expected from automakers in the coming months, and another Federal Reserve rate hike in November, we expect monthly payments in excess of $1,000 to become even more common.
Edmonds
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Last updated on November 22, 2022.
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