In the news: Auto loan volumes increase despite price hikes

Even as higher vehicle prices, insurance premiums, and borrowing costs continue to squeeze household budgets, Spokane-area lenders say auto loan activity is picking up this year as customers refinance existing loans, stretch payment terms, and hunt for more affordable vehicles.

 

A growing amount of data suggests that owning a vehicle has become more expensive in the last 10 years. The average cost of a new vehicle hit $49,000 in March, compared to $34,000 a decade ago, according to Kelley Blue Book, an automotive research and vehicle valuation company. The average monthly payment is about $750, with 1 in 5 buyers making monthly payments of $1,000 or more, according to Car Edge, an online platform that helps people buy, lease, and own cars. Depending on the vehicle make and location, insurance premiums can cost about $500 a month.