Americans' average new-car loan payment hit a record $482 the fourth quarter, and car buyers were paying an average 4.56% for loans, according to researcher Experian Automotive.
What's more, the Experian report shows that the amount borrowed to buy a new car in the fourth quarter hit a record $28,381, up more than $950 from a year ago and a $582 increase from the previous quarter.
Edmunds.com auto researchers show the average transaction price for a new vehicle in the fourth quarter was $33,352.
That means buyers were making down payments averaging about 15%.
Other research says the average transaction price then was around $32,000, suggesting that buyers made down payments of 10% - 12%.
For used vehicles, the average loan amount increased $437 from last year, to $18,411.
Experian says the average length of a new-car loan in the fourth quarter rose to an average 66 months, and a used car loan hit 62 months.
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10 comments:
All to help set up for the big (and last) economic bust in the fall of this year. Will make 2008 look like a hiccup.
6-7 year loans on NEW cars? 5-6 year loans on USED cars? You'll be at the age/mileage where you car is going to be requiring the expensive repairs while you are still paying on the car. That's not very smart.
Ok, So I just bought a new car, payment of $482 per month, car insurance at $125 per month,healthcare $375per month, condo rental at $1,100, utilities at $600 per month, and my i phone at $125 per month. Total $2,807 or in a year, $36,491. I make above the national average, $50k or after taxes, $32,500. I have no money for food, gas, clothing, entertaining, or any sort of fun. How does the end up for me?
2:47, you sound like most working Americans and if you get a 2nd job it puts you in a higher tax bracket.Just like a dog chasing it's tail and going nowhere.
2:47. First of all, you can't afford a new car. Get a good used car at 1/2 the payment. I assume your $600 per month utilities includes cable with all the bells and whistles. You can't afford the premium channels. Get rid of them. In fact, just get internet service and use Netflix for $9 per month. I'm sure there are cheaper phones and plans then $125 per month. Cut back a bit and you'll be just fine.
22 years ago, my wife and I bought 2 new cars. Paid them off in 3 years and continued making payments to ourselves. Next car and every new car since was paid for in cash. Takes a bit of discipline but what freedom. Nothing beats the high of walking into a car dealer knowing what you want and what you want to pay, writing a check and driving off the lot in a new car.
The last new car I bought was in 2003 and that was after a deep discount on a car that wouldn't sell and was stuck on their lot.
I think for the first time since Henry Ford introduced the Model A, Americans can no longer afford to have or buy a new car. There are a record number of young people under 21 who don't have drivers licenses.
My mother had to give up her car because she could no longer afford the cost of maintenance and insurance on her fixed income.
I now drive her to and from the Grocery store and appointments when needed. When the weather is good, I even drive my motorcycle to and from work. It's cheaper and more cost effective. My yearly insurance bill on the bike is only 120 with progressive on my 750 CC bike.
I think it is no coincidence that there are more bike lanes in the cities and even on the highway.
We are now Mexico!!! Congradulations U.S. government may you reap what you sow!!!!!
I paid cash for used cars and trucks and have low insurance payments and no car payments, which lets me at least break even with 431's scenario.
Does this make me a bad person?
Note from 2:47, All good ideas but I am 22 college grad and my professors said that should have expectations for a new car, and a job. If the gov sticks me with a $100 debt, why can't I have a new car?
No more used cars for me.I've had enough.
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