![]() ![]() Put another way, new buyers ended up paying an extra $74 a month on average - up 11.3% - than just a year ago. The average monthly payment for new cars, trucks and SUVs hit a record $730 in the first quarter, compared with $656 a month for the same time last year, according to Edmunds. Higher car prices and higher interest rates are driving up what many, though, are spending toward car payments. Spending too much on one thing can vastly cut into what you're able to use toward something else. After all, most of us don't feel that much wealthier than we did before the pandemic, do we? Did families just ditch the second car now that some work from home, to put it all on just one luxury truck or SUV?Īpril is National Financial Literacy Month and it's a good time to consider how you split up your paycheck to cover housing, transportation and other needs and, yes, wants. It's shocking to see the steady growth in astronomical payments. We were looking at 10.3% in the first three months last year making such high payments, up from 6.2% in the first quarter of 2021 and 5.2% in the first quarter of 2020. During the first quarter this year, that number has jumped up to 16.8% - a record 1 out of 6 buyers - who committed to a monthly payment of $1,000 or more, according to Edmunds. Just four years ago, only 4.2% of consumers who financed a new vehicle in the first quarter of 2019 signed the dotted line and agreed to pay $1,000 or more a month for car loan on a new car, SUV or truck, according to Edmunds data.įlash forward. Spoiler alert: I'm about to tell you, it's not a good idea for many people. You want to spend $1,000 a month or more on a car payment, who has any right to tell you that's a really bad idea? Once you've earned it, many might imagine, you should be able to spend it any way you want. ![]()
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