Edmunds experts find that there was an increase in the average down payment and amount financed for new vehicle purchases, as well as monthly payments during the last quarter of 2020.
The averaged down payment in the fourth quarter was $4,734 compared to $4,458 in the third quarter and $4,329 a year prior.
The average amount financed for new vehicle purchases grew to $35,373 in the last quarter compared to the third quarter’s $34,692, and last year’s $33,525.
Data from the car shopping experts also showed that there was also an increase in the monthly payments, reaching $581 on average in Q4 compared to $568 in Q3 and $570 a year ago.
The financed vehicle purchases last month was a factor in the increase in the numbers during the fourth quarter compared to quarter three.
Edmunds data further revealed that December financed purchases shared the highest average monthly payment in 2020 at $587 and the highest average down payment of the year at $4,876, according to PR Newswire.
The car shopping experts have also noticed the shift in the purchases of larger vehicles during the pandemic.
"Consumers historically lean toward purchasing pricey luxury cars, trucks, and SUVs during the holiday season, which is partially why we're seeing this lift,” Jessica Caldwell, Edmunds' executive director of insights, said. “But we're also just seeing a broader trend of consumers gravitating toward bigger purchases during the pandemic. It might seem at odds with unemployment levels and the harsh financial conditions that so many Americans are finding themselves in right now, but the consumers who are buying new cars during the pandemic are clearly on the other side of the economic divide. They're likely qualifying for the lowest promotional rates and feeling secure enough to put down more money to get the bigger vehicles and features that they want."
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