Edmunds combed through its third-quarter vehicle transaction data and discovered the average annual percentage rate (APR) for both new and used vehicles financed during Q3 continued to climb.

And analysts spotted a new record for average down payments for used vehicles.

Edmunds reported on Tuesday that new-vehicle APR ticked up three percentage points since last quarter to 7.4%, while used-vehicle rates jumped two points to 11.2% since Q2.

Analysts said those readings are at points not seen since the Great Recession. Edmunds indicated new-vehicle APR last hit this vicinity in Q2 2007 when it came in at 7.5%. And the firm noted used-vehicle APR is the highest since Q4 2007 when it climbed to 11.4%.

Edmunds also highlighted the share of consumers who financed a new vehicle with a monthly payment of $1,000 or more increased to a new all-time high of 17.5% in Q3 from its previous record of 17.1% last quarter.

Analysts noted the average monthly payment on a new vehicle in Q3 reached an all-time peak of $736, up slightly from $733 in Q2.

For used vehicles, Edmunds mentioned the average down payment also reached a record high in Q3, up to $4,111 from $4,107 in Q2.

Analysts went on to point out the average amount financed across new and used vehicles ticked slightly lower in Q3, down $207 to $40,149 for new since Q2 and down $337 to $29,328 for used in the same timeframe.

“Spiked interest rates remain the biggest impediment to affordability in both the new and used car markets today. And while the Federal Reserve held off on raising the federal funds rate in their most recent session, the expectation is rates will remain high or even increase slightly through the end of the year, which may help tame inflation in the long run but is inflating monthly payments for now,” Edmunds’ head of insights Jessica Caldwell said in a news release.

“Looking ahead, the ongoing UAW strike could wipe out any inroads made on inventory and the return of incentives, further elevating pricing, at least among Detroit automakers.”

Edmunds analysts took a closer look at the share of new-vehicle sales with 0% financing from 2019 through Q3 and uncovered a notable decline in transactions involving these extremely subvented rates relative to early stages of the pandemic.

According to Edmunds data, 0% financing reached a peak in Q2 2022 at 24.2% of all sales but dropped significantly to reflect just 1.1% of transactions in Q3 2023.

“Zero-percent financing commercials might still be airing to draw shopper attention, but the reality is those deals are all but gone for the average car shopper,” Edmunds’ director of insights Ivan Drury said in the news release.

“The largest segment of consumers financing a new car today has a 7.9% APR. That’s a far cry from those spring 2020 pandemic deals of 0% financing for 84 months that drove significant sales of large trucks and SUVs,” Drury went on to say.

Quarterly New-Car Finance Data (Averages)

Quarterly Used-Car Finance Data (Averages)

Source: Edmunds