Why car prices won't stop rising [CNN]
General Motors Company (GM)
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Source: CNN
But now, automotive experts say, car prices are headed back over that level. And this time, they might stay there. Ivan Drury, director of insights at Edmunds, and Erin Keating, executive analyst at Cox Automotive, say cars are nearing that mark. “It'll edge up, even as much as the consumer doesn't want to pay that amount,” said Drury. “It's just the cost of everything on a car is going up, and $50,000 is just not that far away.” The higher prices for cars – a necessity in many transit-starved cities and towns – are part of a larger affordability crisis that's squeezed Americans, leaving many living paycheck to paycheck just to get by. Here's why you might need to shell out more for a new car next year: Falling interest rates Car buyers often shop based on their anticipated monthly payment, with 80% of car sales financed, according to Experian. Nearly a fifth of new cars now have monthly payments of $1,000 or more, Experian said, a result of a 30% increase in car prices
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