When the Fed raises interest rates, borrowing becomes more expensive.

The Federal Reserve raised its federal funds rate by three quarters of a percentage point on Wednesday. 

With more rate hikes expected in the coming months, buying or leasing a car this year will be more expensive.

Due to their fixed terms, federal auto loans are not affected by Fed rate increases, similar to federal student loans. 

Due to the way the automotive industry is operating right now, Americans will feel the pinch with higher new borrowing costs, but it won't be significant.

Due to the way the automotive industry is operating right now, Americans will feel the pinch with higher new borrowing costs, but it won't be significant.

both up nearly 1% from December 2021. In spite of the rate increases, the cost of buying a new or used car, as well as that of filling up at the pumps

both up nearly 1% from December 2021. In spite of the rate increases, the cost of buying a new or used car, as well as that of filling up at the pumps

both up nearly 1% from December 2021. In spite of the rate increases, the cost of buying a new or used car, as well as that of filling up at the pumps

and exacerbated by the war in Ukraine stunted new car manufacturing. In spite of getting back to normal

The used vehicle market is still in an awkward position. Prices of used cars are unlikely to go down anytime soon, and there is a limited supply of new cars.

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