Inflation is spiking and auto loan interest rates are rising, hitting the highest level since 2019. With no signs of slowing down, the interest rates will soon breach the 14-year record highs. Prospective buyers, already having second thoughts due to the unstable fuel prices, will further hold back their decision to purchase or not.

Based on the latest data from car shopping website Edmunds, the average annual percentage rate on new-car loans was 6.3 percent in October – surpassing the April 2019 ceiling, according to Bloomberg. And there's no limit in sight as the Federal Reserve raised interest rates by 75 basis points for the fourth straight time. This means the federal funds rate will have a new range of 3.75-4 percent, the highest level since 2007.