Auto-loan rejections are up as Federal Reserve raises key interest rate

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Auto-loan rejections are up as Federal Reserve raises key interest rate
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The Federal Reserve's decision Wednesday to raise its benchmark rate for the 11th time, by a quarter-point, could once again send ripple effects across the economy.

, the highest rate since LendingTree began tracking it in 2019.

Many people were already having trouble affording new vehicles before Wednesday’s quarter-point Fed hike. The average price paid for a new vehicle last month was nearly $48,000 — about 25% above the pre-pandemic average. Used vehicle prices have jumped by even more: The average one now costs nearly $30,000, a stinging 45% above what it was before the pandemic.

The average monthly auto payment last month, she said, was $736. Over the life of an an average loan — just under six years — a typical borrower is paying nearly $9,000 in interest.Rehan Staton of Maryland talks with FOX Television Stations about his journey to law school after being employed as a sanitation worker.

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