Home arrow Credit Issues arrow Personal Finances arrow Household Auto Loan Payments Are At An All Time High
User Login





Lost Password?
No account yet? Register
Guard My Credit Menu
Home
- - - THE ISSUES - - -
Videos
Fraud and Scams
Credit Issues
Identity Theft
Privacy Issues
Our Children
Politics & Politicians
- - ACTION CENTER - -
Guard My Credit Links
Helpful Pamphlets
- - - - - - - - - - - - - - -
About ACCESS
Contact Us
About Our Site
Join the Fight
ACCESS is a non-profit, tax exempt consumer advocacy group.

Donations are tax deductable.

Guard My Credit Hits
10382215 Visitors
Household Auto Loan Payments Are At An All Time High PDF Print E-mail

July 31, 2022 - I remember the first car that I financed. It was a used '78 Chevy Camaro and my monthly payment was $74. For a kid in college, it was a big commitment, or so I thought at the time.  But it is nothing compared to what cars cost today. The average amount of a new auto loan payment now is $678. That's about 9 times what I was spending, and as I said, that's just the average. A lot of people now have car payments that exceed $1,000 monthly. 

Image

To be fair, since the car I purchased was used, I should probably have compared my payment to the average used car loan made today. But that number is still high. It now stands at $554.

If you think the current numbers are high, you are correct. The reasons for this are varied. They include the fact that manufacturers have been experiencing supply chain difficulties, reducing the number of cars they can produce. And the fact that the government now regulates a lot of the equipment that has to be installed on new cars. All of these things have driven prices through the roof.

The result is higher down payment amounts, and higher monthly payments. Nearly 13% of new car buyers now have a payment of more than $1,000. That's about double the number receiving such a high monthly payment just on year ago. Anyone considering the purchase of a new or used car right about now could have their stomach tied in knots as soon as they look at the costs.

All we can say is that we don't expect this to last much longer. Increased interest rates are driving a lot of people out of the market. And the poor economy has driven auto loan delinquencies through the roof. If you read our piece from earlier this month, then you'll see that we expect there to be a glut of used cars on the market within the next few months. This will drive prices... and monthly payments... down.

So if you don't have to purchase a car immediately, your best bet is to hold off. Waiting just a few months at this point could save you a boat load of money.

by Jim Malmberg

Note: When posting a comment, please sign-in first if you want a response. If you are not registered, click here. Registration is easy and free.

Follow ACCESS  
Comments
Search
Only registered users can write comments!

3.25 Copyright (C) 2007 Alain Georgette / Copyright (C) 2006 Frantisek Hliva. All rights reserved."

 
Guard My Credit Polls
#1 - Why did you visit our site today?
 
.•*´¯☼ ♥ ♥ Your Support of These Links Is GREATLY Appreciated ♥ ♥ ☼¯´*•.
Advertisement
 
Go to top of page
Home | Contact Us |About Us | Privacy Policy
eXTReMe Tracker
08/16/2022 02:46:31