Higher Interest Rates Spur Trend of Longer Vehicle Ownership

The recent Federal Reserve rate hike has sparked concern for car buyers and owners alike. As borrowing costs climb, many are opting to keep their current vehicles longer rather than taking on high-interest loans.

Average new-car loan rates now stand at around 7%, while used-car loan rates hover at about 7.5%. The exact rate a consumer receives depends on their credit profile, lender, and vehicle.

Nick Hamilton, CEO of CarShield, notes that for many families, 'today's vehicle isn't just transportation, it's one of their biggest financial investments.'

CarShield is helping drivers protect themselves from unexpected repair costs by providing coverage plans. These plans can help manage the cost of repairs and make long-term vehicle ownership more predictable.