Looks like you're correct.
The one thing that is pretty much bringing us all together here (a college) is jumping off of this visual.
Average auto loan now over $30k
- Thread starter Goothrey
- Start date
The one thing that is pretty much bringing us all together here (a college) is jumping off of this visual.
I just bought a 2015 Silverado in august 2015. Total loan amount ended at over 35k. That's 557/mo payment with 135 in insurance plus the gas that was 1000/mo.....needless to say I just traded it in after I had it for a bit. It just didn't make any sense no matter how much I loved that dang thing.
thats part of it. But the most annoying part is that anytime anything like this comes off, many people come on here claiming that they have paid off their house in 3.8 years, pay cash for all cars, have a 5 year emergency fund, worked 80 hours per week through college and graduated with 0 debt, and will retire at age 35 with millions of dollars.
The ******** is deep on finance threads on this site.
whenever i see guys in brand new pickup trucks and i wonder if they have a great income or a lot of debt.
A lot of times they have both. Debt finances lifestyle increases that match what income is in a high % of households.
I just want to say it's deceiving to say that the average auto loan is over $30k when it's really the average auto loan for new cars is over $30k.
I just always get a little acerbic about the car thing, because I constantly hear people whine about their car payments when they just set money on fire buying the things.
If you can swing it, knock yourself out. If you're giving me **** about my rust-bucket 17 year old pickup with 210,000 miles on it (that still runs good) while drowning in stuff-debt, I may be rolling my eyes a bit.
If you can swing it, knock yourself out. If you're giving me **** about my rust-bucket 17 year old pickup with 210,000 miles on it (that still runs good) while drowning in stuff-debt, I may be rolling my eyes a bit.
this is a good outcome for everyone. the guy who leased it doesn't care because he wrote it off on his taxes or his company paid for it. you get a nice car much cheaper than new, and dealer makes 4-5x what they make on a new car sale!
I do but my cars new but I only do so evey 15 years or so. I don't trust what the previous owner did to a car they knew they weren't going to keep long.
To me, it isn't the price of the new ones it's how often people seem to roll them over these days. I know a lot of people that buy cars because the lease terms are too long for them. So while that $30,000 is high enough, I can't imagine how much they end up spending to start that over every other year.
To me, it isn't the price of the new ones it's how often people seem to roll them over these days. I know a lot of people that buy cars because the lease terms are too long for them. So while that $30,000 is high enough, I can't imagine how much they end up spending to start that over every other year.
Lease payments aren't tax deductible for individuals. There would be a sales tax savings on the lease, but no write off for lease payments.
yeah, I buy my cars new. I don't think the price difference is that much on s new car vs a slightly used ones. And most of the used ones have 30,000 miles on them. Because I keep my cars a long time, 30,000 miles means I can own it for 2 years longer.
That's a fair point, but I don't think most folks consider their car budget like vacation, unless they have a dedicated toy of some kind. I just always point it out as an area where most people can save a LOT of dollars relative to their income.
In a timely story, Jamie Dimon came out today on the subject:
J.P. Morgan Chase & Co. Chief Executive James Dimon said the auto-lending market is "a little stretched," in response to a question at a financial investor conference Thursday.
The head of the nation's largest bank by assets noted that the fast-growing auto-loan market, which has boomed along with rising car sales, a decline in gasoline prices and a consistently growing economy, may not remain a bright spot for long.
"Someone is going to get hurt," he said. "And it's not going to be us."
In noting his concerns, Mr. Dimon said he recently has been looking at the pricing terms of recent loans and drilling down into the loan's size relative to the value of the vehicle. He also has been looking at terms on auto leases.
Mr. Dimon said he doesn't think concerns about auto lending are "a systemic issue" given the size of the auto market at around $1 trillion compared with the mortgage market, which is about $8.4 trillion as of the first quarter, according the Federal Reserve Bank of New York.
Auto-loan balances surpassed $1 trillion in the first quarter, a record, growing 11% from the year-earlier period, according to credit reporting firm Experian. That is fueled by the growth in car sales in recent years as well as loosening underwriting standards that also have made it easier for subprime borrowers to get financing.
The volume of car loans held by subprime consumers increased by 11%, outpacing the 9% increase for prime customers, according to Experian.
Exactly. If your car is your toy/passion, dumping fun money into isn't necessarily a waste.
When it's simply an everyday tool, many people are just wasting hard earned dollars.
I realize for many it falls somewhere in the middle, but it seems like the motivation for buying more expensive vehicles is a less noble motivation than pleasure and usually pertains to either vanity or a misguided belief structure that's taking these folks away from what they claim to (and likely actually do) seek.
I wish I could do this with school loans, but the federal backing seems to be a problem.