One and six car buyers are committing to $1000 car payments or auto loans this is the highest level since 2007.
What car buyers are facing?
Car buyers right now are facing car prices as high is $50,000 and they’re paying more and more in interest. Meanwhile, luxury cars have become a cheaper alternative.
But there is a reason why people are paying $1000 for auto loans because most car buyers are taking out shorter term auto loans to get better financing deals which means that the monthly car payment is going to be higher.
Making higher car payments monthly is a severe way to avoid interest if you can avoid it. But here’s the thing most car buyers that are paying $1000 for a car payment are spending more money than they actually can afford putting them at risk with their auto loan.
Average cost of a new car
Most new cars you can’t find a good deal in leisure shop around. The average car price is around $48,000. The average auto loan rate right now is about 7.1%. It’s simply a challenging time to buy a new car nevertheless, with new car inventory or dealership inventory is increasing now and discounts returning. The average new car auto loan payment currently is $733.
Best thing about buying a new car
The best thing that you can do for buying a new car is to shop around local car lots in your area or even shop used cars in your local area whether that be Detroit Michigan or Los Angeles California. Gone are the days of the $99 down car payment, yes you maybe able to find some car dealers to honor it but not much anymore.
You can find any type of auto financing near you though it maybe harder to finance with certain car dealers with your given credit score. Many car dealers have a number of different financing solutions you just have to find the best one that fits your needs.
