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

Joined
Sep 17, 2012
Messages
2,350
Location
A Barrier Island
I enjoy driving my 30 year old stealth mobile black Volvo wagon. It is known as Darth Vader. It is very retro.

reasonable facsimile
Volvo.jpg
 
Joined
Sep 23, 2008
Messages
10,938
Location
Ontario, Canada
We were paying ~$800/ month, but it was a 1% loan for 36 months. It was better for us to give them 1% on their money, than lose all that interest we made in 3 years if we paid cash...
 
Joined
Jul 12, 2012
Messages
7,334
Location
Caldwell Idaho
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.
It is to me. My first house in San Bruno California cost $62,000.00 in 1976. That was scary huge amounts of money .
 
Last edited:
Joined
Nov 9, 2008
Messages
20,869
Location
NH
We did $1k per month, actually I think more, on our last car purchase.

wife didn’t want to pay cash up front, so we compromised, I think it was a 5 year loan, paid off in six months. It was $500 off if we financed, wife calculated that was what the interest would add up to. She didn’t want to shell out all at once, so this made her more happy.
 
Joined
Aug 30, 2004
Messages
28,656
Location
CA
It is to me. My first house in San Bruno California cost $62,000.00 in 1976 That was scary huge amounts money .
The cost of items from 46 years ago isn't exactly relevant.

The mere fact that we have people who are "used to" $1,100.00 a month car payments, scares me.
Maybe you are just not used to the living costs and higher incomes in major metropolitan areas?
 
Joined
Dec 24, 2011
Messages
12,919
Location
North Carolina
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.
Yeah but he "seen it on the news"

People eat this crap up without any critical thinking because it helps them feel superior
 
Joined
Nov 9, 2008
Messages
20,869
Location
NH
It is to me. My first house in San Bruno California cost $62,000.00 in 1976 That was scary huge amounts money .
Calculates to $330k today, if the inflation calculator is correct.

Still big amounts of money.
 
Joined
Dec 10, 2006
Messages
1,357
Location
The IL
I'm surprised it's that low. At 5.7% interest rate (quoted from a CNBC column stating that's the average APR on new) over five years and nothing down, that's a $52,000 vehicle. Not overly impressive. Lots of people running around in vehicles in those vehicles these days.
 
Joined
Aug 30, 2004
Messages
28,656
Location
CA
I'm surprised it's that low. At 5.7% interest rate (quoted from a CNBC column stating that's the average APR on new) over five years and nothing down, that's a $52,000 vehicle. Not overly impressive. Lots of people running around in vehicles in those vehicles these days.
Exactly. $52k barely buys a minivan or mid/full-size crossover now.
 
Joined
Jul 26, 2020
Messages
3,190
Location
FL
It depends on the person(s) income. $1100 monthly payment is not a lot of money for some folks.

Some wealthy folks drive a sub $50K vehicle, I know a neonatologist that drives a Honda CRV.
 
Top