AAA finds car payments rising for Marylanders
MARYLAND – If you are feeling the squeeze with your monthly car payment you are not alone according to a new report from AAA.
AAA’s Your Driving Costs (YDC) has found the average cost of owning and operating a new vehicle in 2023 has increased significantly, with an annual expense of $12,182 or a monthly cost of $1,015. This is a sharp increase from 2022 when the average yearly cost was only $10,728, or $894 monthly.
Maryland’s financing figure is up 90 percent compared to last year.
AAA Mid-Atlantic Region Director Ragina Ali tells 47ABC a shift that says automakers are focusing on larger more luxurious vehicles has pushed financing rates up, with median car prices also rising.
Ali tells us many dealerships are still charging above MSRP, something she herself saw when she looked to purchase a Toyota Crown.
“Most of the dealerships were charging anywhere between an additional 5 to $10000 above the MSI, simply because the vehicle was new and in high demand, so be mindful of that when you’re shopping around, do your homework. Also, you want to factor in other costs, though, not just are you going to be paying more for a car,” she said.
She said that research should involve how quickly a car depreciates, how much your monthly payment is relative to a downpayment, as well as long-term reliability and maintenance costs.