Recently I read three articles (Wall Street Journal, cnbc.com, and USA Today) about car loan statistics and I learned that the average car payment is now $460. The good news is that the average is down from $465.
It was reported that, according to Experian, almost one fifth of all car loans have a payment period of 73 to 84 months AND some are approaching 97 months!! One quote from a finance company was very telling- many are trying to “keep a payment at $300 a month when a car is now $28,000.” In other words, they are painting a picture of the new car buyer trying to buy the luxury vehicle on the compact car payment plan. The bad news is understanding what that payment could be doing to vs. for you.
Again, what can your money being doing for you?
Use some of the internet tools that allow you to see what your money could be doing for you. I could throw some numbers at you, but there is nothing like putting your own numbers in and actually seeing what those projections look like – if you were not living on a payment plan.
How is your plan working?