Connect with us

Home

Interest rates, production costs, and regulations have made new cars cost more.

Published

on

According to Experian, the average consumer pays $495 for a new car loan. That is more than the $447 they paid in 2008. The average interest rate in the third quarter of 2016 was 4.69 percent, compared to the higher rate of 6.14 percent in 2008.

Consumers were financing more car in 2016 than in 2008 — up to an average of $30,022 compared to $24,600 for 2008.

The cost of cars is also higher. In fact, according to Autotrader, about 3 million new cars should have been sold last year, just looking at population growth.

Part of the problem, says Heritage.org, is that new regulations press car prices up, just as new technology actually pushes prices down.

The price of a new vehicle is more than $7,000 higher than 2008, Heritage says. It points to new, costly fuel economy standards that are driving prices up.

Prices are also under pressure at the dealer level. According to Automotive News, franchised new-car dealers in the U.S. spent a combined $3.2 billion in 2012 to meet 61 new federal regulations. Those costs are passed along to consumers.

Front Royal, VA
61°
Fog
7:12 am6:49 pm EDT
Feels like: 61°F
Wind: 4mph S
Humidity: 97%
Pressure: 30.06"Hg
UV index: 0
TueWedThu
66°F / 43°F
77°F / 52°F
81°F / 52°F
Meet the Candidates12 hours ago

Mayor Lori Athey Cockrell Looks to Water, Economic Development and Rail Trail in Another Term

Livestream - WCHS20 hours ago

WCHS vs. Brentsville HS – Girls Volleyball – October 6, 2026

Health21 hours ago

BMI Is Only One Piece of the Health Picture

Interesting Things to Know2 days ago

The Eye Surgery Factory That Could Not Expand

Historically Speaking2 days ago

Ancient Ownership of Israel

Local News2 days ago

VDOT: Warren County Traffic Alert for October 5 – 9, 2026

Local News2 days ago

Reaching Out Now Expands Programs and Opportunities for Warren County Youth

Local News2 days ago

Dance and Arts VA Finds New Home, New Opportunities on Water Street

Obituaries3 days ago

Ann L. Shuman (1933 – 2026)

Obituaries3 days ago

Wendy Lee Whitacre-Stout (1966 – 2026)

State News3 days ago

Spanberger’s Energy Plan Keys in on Clean Energy to Meet Growing Demand and VCEA Goals

Obituaries3 days ago

Jean Elizabeth Grubbs Fogle (1939 – 2026)

National News3 days ago

Feds Provide Guidance on New Federal K-12 Scholarship Tax Credit Program

Local News3 days ago

Why Wait Till November? Mid-Term Election Early Voting  Processes in Place Now

National News3 days ago

US Senate Leaves Nation’s Capital in Advance of Midterms With Much Still Undone

Business Growth Series3 days ago

Business Growth Series: If You Don’t Control Your Day, It Controls Your Business

Business3 days ago

The End of a 20-Year Monopoly on the Credit Score

Historically Speaking3 days ago

Voltron and Immigration

State News3 days ago

States OK Solar Panels for Balconies. Safety Guidelines Haven’t Caught Up

National News3 days ago

Trump TV Ads Paid for with $20M in Homeland Security Funds, Dems Find

Local News4 days ago

Blue Ridge Wildlife Center Patient of the Week: Gray Treefrog

Interesting Things to Know4 days ago

Birthday Twins: See Which Famous Face Shares Your Big Day

Community Events4 days ago

Meet-and-Greet Set Sunday for Republican-Endorsed Front Royal Candidates

Obituaries4 days ago

Barbara Ann Mathews Smelser (1943 – 2026)

Obituaries5 days ago

Kathleen Frances Elar (1956 – 2026)