zzdcar
Home
/
Reviews
/
Buying
/
A Lot of You Are Paying More Than $1,000 a Month for Your Car and It's a Little Worrying
A Lot of You Are Paying More Than $1,000 a Month for Your Car and It's a Little Worrying-June 2024
2024-02-19 EST 22:09:20

Image for article titled A Lot of You Are Paying More Than $1,000 a Month for Your Car and It's a Little Worrying

Edmunds, which is an automotive analytics and data firm, has a new report out, which says that the average monthly payment for new cars is now more than $700, which is completely ridiculous. This is in part because car loan interest rates are . A little over 14 percent of buyers even have monthly payments over $1,000, according to Edmunds, which Edmunds says is the highest number on record and is frankly worrying.

Now, it’s true that because of long-term inflation everything costs more, and a lot more to us Old Millennials, who might still, somehow, expect one’s car payment to be $200-$300 a month, at most. But that simply isn’t reality in 2022, with cars costing more but also automakers simply not selling a lot of small, affordable cars, in favor of $40,000-$50,000 SUVs and trucks. In that sense, big car payments aren’t surprising, though, still, over $1,000? Sheesh.

, Edmunds also notes that, yes, people with the biggest payments tend to be luxury customers, though there are a couple of truck brands in that crowd as well:

More than 1 in 4 consumers who financed an EV committed to a monthly payment over $1,000. 26% of consumers who financed an EV committed to a $1,000+ monthly payment, compared to 24% of consumers who financed a plug-in hybrid, 14% who financed a gas-engine-only vehicle, and 4% who financed a hybrid vehicle.Two mainstream brands known for their popular truck offerings made it to the top 10 list of makes that commanded the greatest share of $1,000+ monthly payments. Though luxury brands dominate the list, GMC earned a No. 7 spot with 41% of its shopper base committing to a $1,000+ monthly payment and Ram took the No. 10 spot with 36% of its shopper base committing to a $1,000+ monthly payment. The full list of makes ranked by share of $1,000+ monthly payments can be found below.Large trucks and large SUVs dominated the top 10 list of models that commanded the greatest share of $1,000+ monthly payments. Ford F-150, Ram 1500 and Chevrolet Tahoe captured the highest percentage of monthly payments over $1,000. The Ford F-150 made up 5.6% of all new vehicle loans made in Q3 with a $1,000+ monthly payment. The top 10 list of models ranked by share of $1,000+ monthly payments can be found below.States with consumers that favor large truck purchases are leading the country in the greatest share of $1,000+ monthly car payments (infographic available). Wyoming, Texas and Utah had the greatest percentage of new-car shoppers who agreed to a monthly payment over $1,000 (25.7%, 20.8% and 19.1%, respectively).

Separately, Edmunds offers the following table, which I’ll confess to not completely understanding, though it does seem to say that 58 percent of Ram 2500s are financed with loans with payments above $1,000.

Image for article titled A Lot of You Are Paying More Than $1,000 a Month for Your Car and It's a Little Worrying

Now, personal finance people — some of them even call themselves experts — generally recommend that your car not take up more than 15 percent of your take-home pay, meaning $600 a month if you make $4,000 a month, or lesser or higher amounts depending on your income as the case may be. And while I can imagine that a lot of BMW X5 buyers make the kind of money that might justify a payment over $1,000 a month, I can also imagine that a lot of F-150 buyers don’t.

And while Edmunds doesn’t go into it, I also wonder how many of the people who don’t have payments over $1,000 a month have cheaper payments because they’ve opted to take out , including , which is eight years, which is batshit. A car loan is also borrowing money to buy a depreciating asset and, well, all of this stresses me the hell out.

Comments
Welcome to zzdcar comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Buying
The 2018 BMW X2 Actually Surprised Me
The 2018 BMW X2 Actually Surprised Me
The crossover came out to mixed reactions from the enthusiast community, I still think the roundel badge on the C-pillar is a little much. But after doing a few hundred miles in one of these, I’ve decided the X2 is actually kind of awesome if you can appreciate what it...
Jun 10, 2025
The Honda S2000 Is Still Worth Worshiping
The Honda S2000 Is Still Worth Worshiping
I was so overwhelmed by the presence of this Montana sky blue 2009 CR that I first fixated on an oddly trivial aspect—“Is that a yellow trimmed interior?” Yes, and there are a few other details that make this special version of Honda’s roadster pop. But when you’re driving it,...
Jun 10, 2025
You Can Get A New Ram For Crazy Cheap Because Not Enough People Are Buying Them
You Can Get A New Ram For Crazy Cheap Because Not Enough People Are Buying Them
We live in some odd times, where an automaker’s best selling and most profitable vehicle is having trouble finding customers. Some of the latest aren’t selling that well, which means some massive discounts for you. reports that in an unprecedented move, Fiat Chrysler will allow Ram dealers to put some...
Jun 10, 2025
At $9,895, Could This Time Capsule 1980 Pontiac Sunbird Drive You Back To To The Seventies?
At $9,895, Could This Time Capsule 1980 Pontiac Sunbird Drive You Back To To The Seventies?
Yesterday we looked at a well preserved car you might want. With today’s Pontiac, we give you another that you might not. That might not mean its price isn’t compelling, however. Are you the reason people say ‘This is why we can’t have anything nice?’ I ask because 78-percent of...
Jun 10, 2025
At $4,499, Could This 2004 Land Rover Freelander SE3 Set You Free?
At $4,499, Could This 2004 Land Rover Freelander SE3 Set You Free?
Land Rover has a reputation for being one of the most unreliable brands on the market. And yet, people still drive them like they’re going out of style. Today’s Freelander is a Land Rover that has actually gone out of style, but will its price have you bringing it back?...
Jun 10, 2025
For $17,950, Could You Become An Accidental Tourist In This 2007 Aston Martin V8 Vantage?
For $17,950, Could You Become An Accidental Tourist In This 2007 Aston Martin V8 Vantage?
The nose on today’s Aston Martin needs a little work. More precisely much of it seems to be missing. While it’s true absence makes the heart grow fonder, will you love this absent nose Aston for its price? Have you ever dropped a deuce that made you particularly proud, or...
Jun 10, 2025
Copyright 2023-2025 - www.zzdcar.com All Rights Reserved