NEW YORK (WOWO) Consumers are facing higher costs in the new-car market, leading many to delay purchases or turn to used vehicles, according to auto industry experts. Data from Edmunds show that in October, the average monthly payment for a new car reached $766, while the average financed amount hit $43,218, both record highs.

Industry analysts say that shrinking affordability has created additional pressure on consumers as overall confidence declines. Used cars, while typically more affordable, offer limited relief due to ongoing supply shortages. Joseph Yoon, a consumer insights analyst at Edmunds, explained that fewer leased vehicles returning to the market after the COVID-19 pandemic has reduced available inventory, keeping prices elevated for in-demand models.

Brian Moody, executive editor at Autotrader, noted that total used-car sales reached 1.4 million in October, up 3% from the previous month, with average prices rising 2% from last year to $25,945. While used cars remain less expensive than the nearly $50,000 average new-car price, elevated costs still challenge many buyers.

Experts suggest several strategies for consumers navigating the market. Longer lease terms or extended lease agreements can help maintain lower monthly payments. Financing over longer periods, up to 72 months, is another option. Dealers may also offer incentives at the end of the month or year to reduce inventory and provide more favorable pricing.

Despite elevated prices, analysts say that careful research, timing, and consideration of higher-value used vehicles, including luxury or electric models that depreciate more quickly, can help consumers find better deals.