. A one percentage point increase on an auto loan adds roughly $20 a month to a car note and thousands of dollars extra over the life of a loan, automotive experts said.
"These interest rates are definitely going to put some customers on the sidelines, just like the housing market," said Ivan Drury, director of insights at Edmunds."But the one trick that the housing market doesn't have are these incentives. Automakers can pull that one lever and there are some people they can re-convince to come back into the market."
"The single best thing you can do is wait," Tucker said."The more people stay off [car dealership] lots, the more you'll see discounts coming in."Dealerships this year are offering 90-day deferred payments on new purchases, giving customers more cash value for trade-ins and even lowering their manufacturer's suggested retail price in hopes that rising interest rates won't scare away buyers.
Out of reach
Good lord. I just picked up a beautiful Hyundai_Global Elantra for $23K. My payment is $450.
Most people buy cars as a status symbol. They think it makes them look like a person with money. It doesn't matter if they have decent housing and real designer clothes. Just as long as they have their expensive rides.