Average New Car Payment Hits Record High $525 Per Month

[Frank Cannon]

https://www.zerohedge.com/news/2018-09-03/average-new-car-payment-hits-record-high-525-month

! No longer available

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....

[Frank Cannon]

What type of moron is paying this a month for a plastic shitbox unless they can write it off?

[RoosGirl]

http://www.realcartips.com/news/0847-popular-10-cars.shtml
Top 10 most popular new cars
Rank   Vehicle              Units Sold   Base MSRP

1   Ford F-Series    70,949          $27,705
2    Toyota RAV4    41,093          $24,660
3    Ram 1500            40,276          $31,695
4    Honda CR-V    32,844          $24,250
5    Toyota Corolla    26,754          $19,400
6    Nissan Rogue    26,535          $24,800
7    Honda Civic    26,311          $18,940
8    Toyota Camry    26,311          $23,645
9    Honda Accord    24,927          $23,570
10    Ford Explorer    22,782          $32,365

My guess is that most people are upside down in their old cars when they buy new ones now and are rolling the amount into their new loans.

[Frank Cannon]

http://www.realcartips.com/news/0847-popular-10-cars.shtml
Top 10 most popular new cars
Rank   Vehicle              Units Sold   Base MSRP

1   Ford F-Series    70,949          $27,705
2    Toyota RAV4    41,093          $24,660
3    Ram 1500            40,276          $31,695
4    Honda CR-V    32,844          $24,250
5    Toyota Corolla    26,754          $19,400
6    Nissan Rogue    26,535          $24,800
7    Honda Civic    26,311          $18,940
8    Toyota Camry    26,311          $23,645
9    Honda Accord    24,927          $23,570
10    Ford Explorer    22,782          $32,365

My guess is that most people are upside down in their old cars when they buy new ones now and are rolling the amount into their new loans.

LOL. Yeah. Base sticker. Obviously no one is buying plane Jane stripper cars anymore if the monthlies are over 5 bills.

[RoosGirl]

LOL. Yeah. Base sticker. Obviously no one is buying plane Jane stripper cars anymore if the monthlies are over 5 bills.

I figure base sticker is about equal to bells and whistles at a negotiated price.

[Frank Cannon]

I figure base sticker is about equal to bells and whistles at a negotiated price.

LOL. Yeah right. You been on a lot lately? They don't even stock base cars anymore and obviously no one is negotiating if the monthlies are that high. They also don't tell you that a lot of these loans are for 6-8 years.

[RoosGirl]

LOL. Yeah right. You been on a lot lately? They don't even stock base cars anymore and obviously no one is negotiating if the monthlies are that high. They also don't tell you that a lot of these loans are for 6-8 years.

I thought that too, but the article gives average total loan and average monthly payment.  The two numbers work out to basically a 5 year loan.

What I was saying is that the Base MSRP should be comparable to a loaded model that people are paying lower than MSRP for.  There's not a whole lot of room for figuring in tax, title, fees, etc between the base MSRP and the average loan amounts.

[InHeavenThereIsNoBeer]

http://www.realcartips.com/news/0847-popular-10-cars.shtml
Top 10 most popular new cars
Rank   Vehicle              Units Sold   Base MSRP

1   Ford F-Series    70,949          $27,705
2    Toyota RAV4    41,093          $24,660
3    Ram 1500            40,276          $31,695
4    Honda CR-V    32,844          $24,250
5    Toyota Corolla    26,754          $19,400
6    Nissan Rogue    26,535          $24,800
7    Honda Civic    26,311          $18,940
8    Toyota Camry    26,311          $23,645
9    Honda Accord    24,927          $23,570
10    Ford Explorer    22,782          $32,365

My guess is that most people are upside down in their old cars when they buy new ones now and are rolling the amount into their new loans.

I've seen articles about exactly that over the last couple of years.  A combination of rolling over debt and extended loan terms (leading to a combination of rolling over debt and extended loan terms).

[Wingnut]

Talked to a guy the other day about his new truck.  He said he got a super low monthly payment.... for 84 months.

84 Months?  WTF finances a vehicle for 84 months..... evidently Millennials do.

[jmyrlefuller]

Talked to a guy the other day about his new truck.  He said he got a super low monthly payment.... for 84 months.

84 Months?  WTF finances a vehicle for 84 months..... evidently Millennials do.

People who want new cars but can't afford them, that's who.

You're better off buying a beater car for a thousand or two, running it into the ground for a couple of years, and selling it to the junkyard for a few hundred at the end.

[roamer_1]

People who want new cars but can't afford them, that's who.

You're better off buying a beater car for a thousand or two, running it into the ground for a couple of years, and selling it to the junkyard for a few hundred at the end.

I don't think I have ever paid more than 3500 bucks for my daily driver. I have been in way harder than that on flips, but for myself, I normally buy a piece of crap and rebuild it. I haven't had a car loan to worry about but twice in my life. Didn't like it much.

[cato potatoe]

Dealer add-ons are making this worse.  If you haven't bought a new car in the past 10 years ... be prepared to say "no" about a dozen times during the closing process.  Jerks tried to sell me $6k worth of prepaid maintenance, extended warranties, dent protection, gap insurance, etc.  The states need to eliminate the dealership model and let prospective buyers pay for test drives or rentals.

[endicom]

The states need to eliminate the dealership model and let prospective buyers pay for test drives or rentals.

Hertz has a Rent2Buy program. Rent for a few days and the rental fee goes towards the purchase price if you buy.

[Axeslinger]

I just bought a VERY loaded 2016 Ram 1500 w 24k miles, clean across the board, paid 27 out the door.   Got a loan as a negotiating tool (let them play their what do you want your payment to be games) and then paid it off on first payment date.   


I don’t know why anybody buys new....

[ABX]

I wonder how much these would be if the government didn't require so much these days, from traction control, to cameras, to automatic braking. Features that 5-10 years ago, would have only been found on the top end models. Big brother decided everyone must have the same.

(I don't have a lot of room to talk, I'm still finding new tech easter eggs in my new one almost every day).

[Frank Cannon]

Dealer add-ons are making this worse.  If you haven't bought a new car in the past 10 years ... be prepared to say "no" about a dozen times during the closing process.  Jerks tried to sell me $6k worth of prepaid maintenance, extended warranties, dent protection, gap insurance, etc.  The states need to eliminate the dealership model and let prospective buyers pay for test drives or rentals.

Yeah because Dealers never tried to upsell you with undercoating and warranties before. Give me a break. They have been doing that forever. I have manufacturer movies from the 50's and 60's detailing to salesman how to upcharge their buyers.

[ABX]

Dealer add-ons are making this worse.  If you haven't bought a new car in the past 10 years ... be prepared to say "no" about a dozen times during the closing process.  Jerks tried to sell me $6k worth of prepaid maintenance, extended warranties, dent protection, gap insurance, etc.  The states need to eliminate the dealership model and let prospective buyers pay for test drives or rentals.

App subscriptions after 'trial periods' would have run about $75-$100/month. Yes, app subscriptions, like for your phone. I found out though that I can tether my own phone to it with Bluetooth and get all the apps for free. I bet most people don't even know that, they just pay whatever they are told.

[Wingnut]

Yeah because Dealers never tried to upsell you with undercoating and warranties before. Give me a break. They have been doing that forever. I have manufacturer movies from the 50's and 60's detailing to salesman how to upcharge their buyers.

I remember "Rusty Jones" being in bed with a bunch of dealers in the midwest before they went belly up.

[Frank Cannon]

I remember "Rusty Jones" being in bed with a bunch of dealers in the midwest before they went belly up.

Some of my original collector cars have original invoices with some of these services added on. In today's dollars they would cost an extra 3-5K on the sticker and the actual evidence of the rustproofing or add on is lacking at best. Dealers have been hosing people since the brightly colored balloon tied to the radio antenna was invented.

[Fishrrman]

I just pay cash.
Easier that way.

Current vehicle is a 2013 Toyota RAV4 I bought in January 2015 through their "certified/used" program. Came with a 100,000 mile or 7-year (whichever comes first) warranty on the power train. That's better than you can get new from them...

[Gefn]

https://www.zerohedge.com/news/2018-09-03/average-new-car-payment-hits-record-high-525-month

! No longer available

My dad always paid cash for his cars. You get a better negotiator

[Frank Cannon]

My dad always paid cash for his cars. You get a better negotiator

Not anymore. I know three separate people who are cash buyers who couldn't deal. One was Honda, one was Mercedes and one was Chevy. All of them had to take a mortgage out to get better pricing because the dealers have scams running with the lenders. All of them payed off on the first installment but they had to go through the bullshit of taking a loan. The savings were significant.