Don’t Waste Your Money: $700 New Car Payments

CHARLOTTE, N.C. — Remember just a few years ago when a car loan was $300 a month? Now, unless you put down a huge down payment, those days are gone forever. The average new car, as of spring 2023 was $48,000, according to Kelly Blue Book. That has sent the average car payment to a record high of $725. But that’s chump change for some shoppers, because a separate report from Edmunds.com says one in 10 buyers are now paying $1,000 a month.

Edmunds says buyers of loaded full-size pickup trucks and luxury SUVs are signing up for monthly payments as big as mom and dad’s mortgage. And so far the economy is not deterring buyers. Many loans are now 6 or 7 years, up from 5 years a few years ago. But remember that your car will need a new $800 set of tires, and other expensive repairs, when you are still paying for it. What can you do?

Experts suggest you:

Put down a larger down payment, if you can afford to. Otherwise, look at a cheaper car.