How your credit score affects the cost to finance a car

Tim Boyle | Bloomberg | Getty Images

Although prices for new cars are moderating a bit, financing a vehicle purchase hasn’t been getting any cheaper.

With the Federal Reserve’s latest interest rate hike — the sixth this year — auto loans are poised to become even more expensive. The Fed’s move has a ripple effect, generally causing rates to tick up on a variety of consumer loans and credit lines (and some savings accounts).

The average price of a new car is about $45,600, according to a recent estimate from J.D. Power and LMC Automotive. That’s down from a July

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