Average car payment hits record $712/month

Source: https://www.investmentwatchblog.com/average-car-payment-hits-record-712-month/
Published: Jul 7, 2022
Author: Staff
Post Date: 2022-07-07 10:19:03 by Horse
Views: 444

The average car is getting less affordable for the average person, with typical monthly payments hitting all-time highs.

According to a report by Cox Automotive and Moody’s Analytics, the affordability of new vehicles continued to climb in May for the fourth month in a row, with monthly car payments averaging $712 per month.

According to Kelly Blue Book, the average new car purchase price in May was $47,148.

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#1: StraitGate    To: Horse (#0)

the average new car purchase price in May was $47,148.

That explains why used car prices are so high. And new cars come equipped will a slew of Nanny State "safety" annoyances and other techno-bling that they're no fun to drive: automatic start/stop, lane "assist", automatic braking, big TV screen in the middle of the dashboard, pushbutton parking brake (either on or off, nothing in between). And GPS that allows gov to track you, and on-board data logging that gov can use against you. I could go on.

StraitGate posted on 2022-07-07 10:47:45   Reply   Private Reply

#2: Lod    To: Horse (#0)

No such thing as the average car nor the average buyer. imo

Lod posted on 2022-07-07 11:37:55   Reply   Private Reply

#3: Dakmar    To: StraitGate (#1)

pushbutton parking brake (either on or off, nothing in between).

That really puts a damper on doing Rockford style J-turns.

Dakmar posted on 2022-07-07 13:14:40   Reply   Private Reply

#4: X-15    To: Horse, Lod (#0)

My rule of thumb for thirty years: if you can't pay off a car loan in 48 months, you can't afford it. Extending a loan beyond 48 months does not make financial sense. It's actually preferable to buy a car outright, unless you want a short-term loan to build your credit rating. That's my .02

X-15 posted on 2022-07-07 13:16:45   Reply   Private Reply

#5: StraitGate    To: X-15 (#4)

Going into debt for a vehicle should be avoided as much as possible.

“The rich ruleth over the poor, and the borrower is servant to the lender.” -- Proverbs 22:7

But a lot of people buy vehicles that are much nicer and fancier than they really need or can reasonably afford. Most 20 year old guys don't really need a $48,000 truck. And most waitresses don't really need a $37,000 SUV.

The average price of my last 4 trucks (purchased over the last 36 years) was $2,520. Only the last two had air conditioning.

Sixteen years ago when the big corporation I was working for went woke and queer, I quit. And one of the reasons I was able to do that is that the wife and I were debt free (all except a few years left on a modest mortgage). My wife would rather walk than have a car payment.

StraitGate posted on 2022-07-07 21:50:05   Reply   Private Reply

#6: Lod    To: StraitGate (#5)

What a beautiful post, thank you.

Lod posted on 2022-07-08 21:34:36   Reply   Private Reply