Cost of new vehicles increase because of inflation

[Mr. Ed]

Traded in my 2021 Hyundai Kona lease vehicle for 2224 Honda Civic EX. The MR sticker price was similar, however, the civic monthly payments are substantially higher than what I paid on the Hyundai due to inflation. It takes more money to pay on a debt today than 3 three years ago.

 

[dilettante]

Inflation, or higher interest rates today? Of course prices are higher too, some of that is inflation and some of it dealers playing games to get the most out of every sale because they struggle to get cars to sell.

 

[Murrmurr]

Both those cars are imports, right?

I doubt the higher payments are directly due to inflation. There's other stuff at play.

 

[againstthegrain]

The interest rate that the underlying loan for the lease is obviously much higher than 3 years ago and likely the reason the payment is higher. Manufacturers at times also support leasing by offering very high residual values for what the vehicle will be worth at lease end. It's a sneaky way to give a discount in times of lower demand. Of course the actual selling price of the car is a huge factor so having similar prices on the window sticker may not result in the same monthly payment, everything else being equal.

Whether you want to attribute that to an increase in interest rates or inflation which has pushed the feds to raise rates it's the same problem; too many people chasing too few goods.

Probably too late now, but buying the Hyundai at the end of the lease and selling it would have been another alternative depending on the residual value.

 

[Don M.]

Making car payments, or leasing a car, with today's high interest rates, can make the final costs ridiculous.

 

[Nathan]

Cost of new vehicles increase because of inflation

Traded in my 2021 Hyundai Kona lease vehicle for 2224 Honda Civic EX. The MR sticker price was similar, however, the civic monthly payments are substantially higher than what I paid on the Hyundai due to inflation. It takes more money to pay on a debt today than 3 three years ago.

I'm sure that the 2224 Honda Civic EX did come with a bit of a sticker shock.

 

[perplexed]

We have a 1999 cavalier with low mileage and have 3 people in line for it. The thought of a newer car makes us cringe as car tags in Ms are outrageous and with insurance too there is no way at our age. We are keeping what we have as long as we can.