#CarPayment
How Do Americans Manage to Pay Record High Prices for New Cars in 2017? By Paying Forever
Yet month after month, for six consecutive months to begin 2017, automakers are witnessing fewer and fewer buyers walking into dealers after sales shot to record levels in calendar year 2016.
Incentives, at $3,550 per car, are an effective lure. But that doesn’t change the fact that buyers are paying, on average, $33,000 and borrowing, according to Edmunds, $31,000 in order to finance a purchase.
How do car buyers afford the highest prices on record? By stretching the payment period to the longest terms ever: 69.3 months in June, Edmunds says.
American Car Buyers Can't Get Enough of Long-Term Car Loans
The low, low monthly payments offered by spreading the cost of a new or used vehicle across a vast gulf of time is certainly an attractive one, even though the practice is fraught with hidden danger.
For U.S. car buyers, it has also become a very popular one, with data showing just how many people have decided to embrace a 73- to 84-month payment plan. Not only are their spending habits changing, they’re also changing their lender.
Piston Slap: When is the Olds Too Old?
TTAC commentator supremebrougham writes,
For the first time in a long time, I am 100% debt free, and it feels great! It’s so great that I have decided to try and keep my car going for a while yet, instead of trading it for a new one.
Recent Comments