Average auto loan now over $30k

[Goothrey]

http://www.cnbc.com/2016/06/02/us-borrowers-are-paying-more-and-for-longer-on-their-auto-loans.html


Fascinating how much people spend on something that will be parked for 90+% of its life.

 

[brianhos]

$30K? Don't people have downpayments anymore?

 

[KnappShack]

Timely info. Was looking at the Ford F-150 this weekend. $42k minimum if you can even find a 4 wheel drive in SoCal.

Started looking at other cars for "only" $25k. Ran the payments on the truck and car notes, went outside, and hugged my free and clear ride.

If I can't pay cash then I'm not buying. It's the CF way

 

[ripvdub]

I'm driving my pos Ridgeline until it dies.

What do you want to bet most people buying those cant afford them?

 

[ArgentCy]

$30K? Don't people have downpayments anymore?

Have you seen some of the price tags on those lots anymore? My goodness many of those cars have retail prices that cost more than my house. 60k plus.

First new car that comes up on my local dealership. New 2016 Cadillac MSRP $88,460 - struckthrough (OMG good thing I was beginning to be worried) Limited Time Savings - Our Price $83,649.


By the way that median and average home prices for the entire town are less than that by a decent margin.

 

[KnappShack]

Have you seen some of the price tags on those lots anymore? My goodness many of those cars have retail prices that cost more than my house. 60k plus.

Your house cost less than $60k? Sometimes I really miss the Midwest

 

[Cyclonesince78]

$30K? Don't people have downpayments anymore?

Yes, people have negative trade equity as a down payment, so they end up borrowing more then the purchase price of the vehicle. Then they take out 6+ year loans, and have the same issue on the next car.

 

[Shawker]

I'm driving my pos Ridgeline until it dies.

What do you want to bet most people buying those cant afford them?

I'd say it's a safe bet many cant. People are concerned with their appearance to others so they buy a higher end automobile and then after 12 months of struggling they admit that they can't afford the $500+ monthly payment.

 

[brianhos]

Yes, people have negative trade equity as a down payment, so they end up borrowing more then the purchase price of the vehicle. Then they take out 6+ year loans, and have the same issue on the next car.

'Murica!

 

[CycloneErik]

I'd say it's a safe bet many cant. People are concerned with their appearance to others so they buy a higher end automobile and then after 12 months of struggling they admit that they can't afford the $500+ monthly payment.

I agree with the general idea, but I think you're putting the payment $2-300 too low.

I don't have a general issue with borrowing for a car if need be, but I couldn't stomach doing $30k.

 

[CarlHungus]

The thought of taking out that large of a loan on an asset that depreciates as much as a car does makes me cringe.

 

[ArgentCy]

It also isn't that bad at $30,000. I will have to admit I borrowed almost $25,000 on the first and probably last new car I'll ever by. The used car market was sky high due in part to cash for clunkers and it was a low fixed interest rate. This was a basic model with no frills and I had almost 5k down but much of that goes to vehicle tags, sales tax, etc. I probably didn't negotiate as much as I could have but I had just gotten a car seat into the back of a small two-seat "sports car".

 

[Shawker]

I agree with the general idea, but I think you're putting the payment $2-300 too low.

I don't have a general issue with borrowing for a car if need be, but I couldn't stomach doing $30k.

Agreed. Borrowing money for a car is natural. A loan that big though, no thanks.

 

[CyDude16]

If you can't pay for it all at once, you can't afford it.

Did I do it right?

 

[alarson]

Have you seen some of the price tags on those lots anymore? My goodness many of those cars have retail prices that cost more than my house. 60k plus.

Yeah. Prices have gone way up.

I think for a comparable vehicle (mileage\features) to the vehicle i got 5-6 years ago the price is now nearly double.

 

[19clone91]

The days of reasonably cheap cars are over now that computer gadgets, touchscreens, and other digital features sell cars. Not that the additions of electronics in a car should double the price, but thats how companies justify the price jumps im sure.

 

[dmclone]

I love to see this along with a lot of people doing leases. It means I can get a luxury car for the price of a Camry that is 2 years old.

 

[benjay]

Prices are getting too high to buy new anymore. I'm sticking to used until I have more money than I know what to do with (probably never).

 

[cmjh10]

If you can't pay for it all at once, you can't afford it.

Did I do it right?

Looks like I will be driving my Buick Century for the rest f my life.

 

[CyDude16]

Looks like I will be driving my Buick Century for the rest f my life.

Still can't afford it!