New-Car Prices: By the numbers
From January to September, U.S. new-car prices averaged the highest for that nine-month period since 2008 — or, actually, ever.
Car prices are a great vehicle for understanding issues underpinning the current economy. So what’s behind the climb in prices for new autos?
It’s partly the effect of tariffs on raw materials — a Trump policy. It’s partly due to rising interest rates since 2015 — not a Trump policy, as he’s consistently attacked the Federal Reserve for raising rates. On the back of these rate hikes, there’s less “cheap money” available, and loan terms are moving in a direction less favorable to borrowers, extending to 72 months for some.
