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Prices Crush Buyers: Loan Payments on New Cars Hit All-Time High

Auto loans broke the $700 level in July for the first time ever because consumers fueled their desire for bigger new vehicles as prices skyrocketed since the start of the global pandemic. Smaller discounts from auto dealers along with rising prices for cars and interest rates for loans have thrust monthly payments into the $700 level, said Thomas King, president of the data and analytics division at J.D. Power, a Troy, Michigan-based data analytics company. High monthly auto loans are a result of consumers seeking larger, costly cars and pickup trucks along with longer auto loans, Greg McBride, chief financial analyst for Bankrate, a New York-based financial data company, told TheStreet.