Higher prices along with a rising interest rates are leading to monthly loan payments reaching new all-time highs. After breaking $700 for the first time ever in July, the average monthly finance payment in August is forecast to hit a record $716, up $78 from August 2021. That translates to a 12.2% increase in monthly payments from a year ago, which is above the 11.5% increase in transaction prices. The average interest rate for new-vehicle loans is expected to increase 137 basis points from a year ago to 5.51%. Worse, monthly loan payments would be higher if not for ongoing soaring used-vehicle prices. This, of course, increases the amount of trade-in equity that new-vehicle buyers use on their next purchase.