The average interest rate on a NEW car loan just hit a record 7.2%. Meanwhile, the average interest rate on a USED car loan is now 11.0%. The average new car payment in the US is now $750 and the average new mortgage payment is $2,850. This means that an American who wants a new car and house is paying $3,600/month or $43,200/year AFTER a 20% downpayment. That is 62% of the median household income in the US. Necessities have become luxuries.