Interest now adds more than $10,000 to a typical car loan
In its weekly market summary on November 2, Cox Automotive compared today’s costs with 2019. Interest paid over the life of a typical new vehicle loan is up 79%, to about $10,100, and on a typical used vehicle loan it is up 96%, to about $10,900. The price of the vehicle alone is up roughly 30%, but the all in cost, with interest, is up 37% for new and 43% for used. Cox also notes that the average down payment on a used vehicle loan is now close to zero.
Show the data
| Cost | Change, % |
|---|---|
| Vehicle price | 30 |
| All in cost, new | 37 |
| All in cost, used | 43 |
| Loan interest, new | 79 |
| Loan interest, used | 96 |
What it means for owners: the sticker price is only part of the cost. A larger down payment or a shorter loan cuts the interest bill, and a quote from a bank or credit union gives you a number to compare with the dealer’s offer. Badger’s expenses log lets you record loan payments next to fuel and service, so you see what the car really costs each month.
Certified pre-owned cars draw more interest, but few shoppers know what CPO means
A Cox Automotive study published November 2, based on a survey of 825 people who plan to buy a vehicle within six months, found that 57% of shoppers are open to a certified pre-owned (CPO) vehicle. The appeal of new vehicles fell to 76% from 85% in 2023, while the appeal of CPO held at about 74%. Yet only about 31% of new vehicle shoppers and 27% of used vehicle shoppers who are open to CPO say they know exactly how it differs from an ordinary used car, and about two thirds were unclear on what the letters stand for. CPO sales make up about 12% of retail used vehicle sales.
What it means for owners: the study points to inspection, reconditioning and warranty coverage as the benefits of a certified car, but what each program includes is not the same everywhere. Before paying more for a certified car, ask for the inspection checklist, the warranty length in miles and years, and the service history. If you sell a car yourself, a complete service record helps it compete with certified cars; see our guide on service history and resale value.
Hybrids drive Hyundai’s record October
Hyundai Motor America reported US sales of 73,452 vehicles in October, up 5% from a year earlier, its best October on record. Hybrid sales set an October record, up 20%, and made up 29% of the brand’s volume. The Santa Fe led with 17,959 sales, up 52%, ahead of the Tucson at 17,808, down 23%, the Elantra at 12,011 and the Palisade at 10,840. "We had our best October ever," said Randy Parker, CEO of Hyundai Motor North America.
What it means for owners: strong demand for hybrids means fewer deals on the most popular models, so shop several dealers. Our guide to real fuel economy explains how to check what a car actually gets.
