12% are paying $1,000+ a month for car loans ...

[odie]

. Seen it on the news .

 

[Astro14]

Wow!

My car loans add up, to, uh, let’s see…

Zero

 

[Hermann]

Saw that on CNBC and YAA on youtube. Never had a payment over $300 when I was poor. People continuing to overpay because of FOMO

 

[andrew_j]

The $1000 payment might mean many things like overspending on a vehicle or simply horrific credit so interest rate is approach 20%+ .

I am glad it’s only 12 % of people out there and not more.

 

[Passport1]

12 % of people out there and not more.

That's about 1 out of 8. Just driving my normal route today. Might have driven by 5K cars. 600 $1000 car payments.

 

[BMWTurboDzl]

Anecdotally I'm also seeing an uptick in size of payment as a percentage of gross income.


Note: I'm in mortgage finance, QC.

 

[gman2304]

That's about 1 out of 8. Not a small number.

Also doesn’t include folks that have $700, $800, $900 car payments……

 

[Silver]

Now look up the % of people leasing. It's huge. Folks don't care - it's like money is meant to be spent NOW.

Whatever. I hope they've got retirement.

 

[The Critic]

I think the number is far higher than that in my area. And many middle to upper middle class area. Then again, the average mortgage + taxes/ins in my area (which is similar to many major metropolitan areas) is probably in the $5-7K/mo range, so $1k/mo for a car payment isn't exactly a big deal when your monthly takehome income is $10-15K/mo.

 

[Lubener]

If they can afford it, good for them. If they cannot and the repo man pays a visit, I will gladly play my violin.

 

[JeffKeryk]

12% of what? And where? Worldwide? US?
Is that 12% of the public? Doubt it. More like 12% of car loans and likely new car loans.

I call clickbait. Details, people.

 

[billt460]

Insane!

 

[joegreen]

Idk. I stopped caring about new cars when i started driving new cars every day at work at enterprise. You realize wow this new 60k truck drives the same as my 5k truck. And yes i think it is FOMO. If everyone got to drive new vehicles all the time they might realize a new vehicle isnt vastly improved from something older. In fact some of the new vehicles can be a little more frustrating as they have more safety features such as really laggy accelerator response or slow drive to reverse shift times etc.

 

[2strokeNorthstar]

At least my car would be paid off in 4 months.

 

[JeffKeryk]

Cars are depreciating assets. Spend your hard earned cash wisely... Unfortunately it only spends once.

 

[wemay]

Question is, what was the percentage 10 years ago with respect to avg incomes of the day. Who knows, it might have been the same.

 

[SC Maintenance]

If they can afford it, good for them. If they cannot and the repo man pays a visit, I will gladly play my violin.

I know plenty of people that can afford it. They choose not to and that's how they got to the point they could afford it.

 

[JHZR2]

No doubt. I looked at a Tesla online the other day with my kids because they like them. The lease and finance were like $800-1000/mo.

Crazy.

For a depreciating asset.

 

[JHZR2]

I think the number is far higher than that in my area. And many middle to upper middle class area. Then again, the average mortgage + taxes/ins in my area (which is similar to many major metropolitan areas) is probably in the $5-7K/mo range, so $1k/mo for a car payment isn't exactly a big deal when your monthly takehome income is $10-15K/mo.

Yeah but imagine when folks have that or more take home and don’t have those obscene costs just for housing and to keep up with the Joneses.

 

[Vil_Riker]

Is it per individual or per family?

A $72,000 truck at 6% interest and 9% sales tax will be $1,145 per month over a 7 year period. Given how high the car and truck prices are, the monthly payment amount is not surprising.