Automotive loan amounts and monthly payments continue to reach record highs, but US consumers seem unfazed.
According to Experian's latest State of the Automotive Finance Market report, Americans are paying an all time high monthly payment for both a new and a used car and assuming a larger amount of debt to make it happen as affordability continues to decline. Americans now hold $1.149 trillion of outstanding auto loan debt (a record) up from $1.027 trillion two years ago....
... with the average new car loan jumping $724 year-over-year to $30,958 in Q2 2018, while used vehicle loan amounts increased $520 to reach $19,708.
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13 comments:
A trillion with car loan debt
A trillion with student loan debt
A couple trillion on credit card debt
then the guberments 18 more trillion in debt to keep us safe...
As a business we would have failed a long long time ago!
Shame many folks don't care about this serious situation!
Most people do not have any retirement savings.
I went out of town and bought a leftover new Honda for many thousands less than msrp and a low interest loan from SECU with 1/2 down.
It was well worth a few $$ in interest and keeping some money in savings.
People are stupid to continue to be kissing the auto industry's a$$.
Homie you can't accuse others for kissing auto industry a$& when YOU JUST DID IT. Fix what you own DIY you HAD the cash. However Japan is happy thou.
Man.
I make fairly good money and that would be a hard nut to crack.
Five hundred plus for a car each month? And gas? And insurance?
And maintenance?
Who can do that???
God help you if you pay day care, too.
It's coming.
You know what I'm talking about, too......
12:21 PM Where??
I can only afford to buy used.
My last new car was a 2003 Pontiac vibe. Since then, I have only purchased used. I cannot afford the payments on a new car even if they finance it for ten years.
My wife and I both work full time, but I refuse to pay over 500 per month for a car. It's bad enough that I am paying 400 per month for a certified pre-owned. But at least it is a Honda and they are built to last.
I agree that something has to give. They have priced us out of the market. Even used cars and trucks now cost what a new car or truck used to cost.
you could do a lot of repairs on the car you already own for $525 a month, within 2 years you could have the whole car rebuilt, including a new engine and new transmission. those new car loans are for 5-7 years?
New car is the worst investment you can make. Rich people with real money hold on to cars and clothes for years. They don't need to put on airs or impress anyone.
I am saving now so when taxes come in I can pay cash
A lot of business people write off on their taxes new cars, boats, RVs. This is done evert two years as entertainment expenses. Also writ of big social parties. What does the average taxpayer write off -NOTHING. So when. Your neighbor gets a new very expensive car every two years you the taxpayer is paying for it.
Thanks to obama.
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