Monthly car loan payments hit all-time high

Monthly car loan payments hit all-time high with those paying $1,000 a month DOUBLING in the space of a year

The percentage of people taking out new car loans and paying $1,000 in monthly payments has almost doubled from 7% to 12.7% over the last 12 months

Average monthly payments on new car loans are at a record high of $686
Used car market sees average monthly payments at $554, up 12% year-on-year

Pandemic supply-chain problems are partly to blame with the shortage of new cars leading to price hikes on the forecourt

Monthly interest payments also shot up after the Federal Reserve raised rates

https://www.dailymail.co.uk/news/article-10999215/Monthly-ca…

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That is the industry business model: discontinue the lower priced models, load the remaining models up with extra bells and whistles, and soak the living daylights out of customers, with the excuse “why, there is a shortage. if you don’t want to pay up, get out of the way, because the next person in line will pay”.

Steve

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Even if this was a year without significant inflation, would we not expect EVERY YEAR to hit a new all-time high in loan payments?

Seems logical that since prices generally go up and not down over time, that new all time highs (much like in the stock market) should be the norm, not the exception.

If one follows your link, you will see this actually confirmed. Every single year has a new all time high in those paying $1000 a month and nearly every month on their chart reflects a new high in monthly payments.

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I get it that at some point we will have to buy a new car.

But currently, our monthly car payment is exactly the same as it was last year.

And the year before that.

And the year before that.

And the year before that, etc, etc, etc, etc.

And that would be zero.

But I won’t buy a car with more than I need, even if I wanted.

My CEO/COO/CIO/CFO will tell me “No.”

Sometimes being married to a tightwad can be extremely annoying. The things we do for love. :slight_smile:

AW

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Every single year has a new all time high in those paying $1000 a month and nearly every month on their chart reflects a new high in monthly payments.

Agreed.

Just like most statistics, unless you see all the data it makes no sense. The number that crossed from $999 to $1001 is arbitrary at best. At a minimum I’d want to see histogram of all car loan payment amounts to even begin to make any sense of it.

But then who would want to learn anything about analyzing data in school?

Mike

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