Database firm Experian notes U.S. Monthly Auto Payments Reach Record High in First Quarter.
New vehicle loans averaged $31,455
The average monthly payment for a new vehicle hit at record $523/month
Consumers are lengthening loan terms, with six years being the most common, to adjust to the higher costs and rising interest rates.
Outstanding loan balances reached a record high of $1.108 trillion
Loans for used vehicles reached $19,536, also a record
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Buying a new car is the worst investment. You are far better off with a used low mileage Toyota and not a monster truck or SUV unless you write it off for work. Otherwise get a practical used car or pay cash. People are obsessed with vehicles like they are status symbols or extensions of their egos and prestige. No one really takes notice and if you don't own it's not yours anyway. I am more impressed to see an old car that has been well cared for paid for and still on the road looking like it's new.
ReplyDeleteI know someone who bought a new truck for 900.00 a month
ReplyDeletecrap, I will walk first
The US Dollar has been inflated (devalued) and this price inflation is the result.
ReplyDeleteI needed a truck, but couldn't afford the price or high payments, so I had to settle for an older pickup truck that is almost ten years old. My wife and I work, but I can't see paying for a new car or truck that costs as much as my house did in 1990!
ReplyDeleteEventually your car or truck will break down and it will become a choice of either dumping thousands to get it fixed or buy something used that is hopefully in better shape. It's sad that we now have to make these decisions. I refuse to get a leased vehicle, but if you want something new, that is your only choice. Incomes are no longer keeping up with inflation and the cost of living. Unless you earn a six figure income, I can't see how anyone around here can afford a new car or truck.
Careful about writing things off - remember an entirely brand new tax cycle in January 2019, with the details still be worked out. One may not have the luxury to "write off" much.
ReplyDelete