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Its not just your imagination.
Here are three reasonscar payments have significantly increased.
Factories were shut down, placing production behind.
High Interest Rates
Another significant factor contributing to high car payments is rising interest rates.
Today, auto loan rates are just above 9.5%, perMarketWatch.
With longer loan terms becoming the norm, consumers end up paying more in interest over time.
Negative equity is another issue.
However, with the rapid depreciation of cars, many find themselves owing more than their car is worth.
This negative equity results in higher loan amounts and higher monthly payments for a new car.
These types of vehicles tend to have higher price tags, leading to increased car payments.
Buyers are opting for more features and customization options, driving up the overall cost of these luxury cars.
But the good news is that U.S. production has gone back up and car prices have gone down slightly.
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