Growing share of car buyers pay $1,000 or more a month for loans

A growing share of car buyers are signing up for monthly loan payments of $1,000 or more amid rising interest rates and elevated auto prices, new research shows.

Overall, 14.3% of consumers who financed a new vehicle in the third quarter committed to payments at or above that amount, up from 8.3% during the year-earlier period, according to Edmunds. For buyers of electric vehicles, that share is 26%; for hybrids, 24%.

“High prices and rising interest rates are dealing consumers a one-two punch by catapulting monthly payments into a new realm,” said Jessica Caldwell, Edmunds’ executive director of insights.

The interest rate on new car loans has reached 5.7%, up…