Frightening Car Buying Statistics

March 07, 2014

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?

About the Author

After many years of coaching others in the workplace, Parkey Thompson decided to follow his passions and focus on providing personal financial coaching, strategic planning and direction setting to individuals, families, religious organizations and small businesses by starting Financial Focus. Throughout his personal and professional life, Parkey has experienced first-hand and overcome many of the challenges he now helps others navigate on a daily basis. For over twenty years, Parkey held various leadership positions across multiple companies, including companies such as General Electric and IBM. In 2005, he thoughtfully decided to use his leadership skills to help others significantly improve their own personal finance, career, life, and business financial situations. Parkey is a certified financial coach, compassionately helping his clients navigate through challenging financial and life decisions on a daily basis . He is a Sunday School teacher, volunteer and has served on several boards / committees. He enjoys passionately motivating and helping families, individuals, businesses, and churches envision and achieve their dreams. In addition to Financial Focus, Parkey is a contributing financial writer to local magazines and newsletters, a former frequent guest on “Mornings” with Lorri Allen and Larry Estepa on the FamilyNet TV and radio network, and a radio contributor to Family Life Radio's Intentional Living program. More than anything, Parkey and his family live what he teaches others. Parkey and his family are debt free and live without credit cards and on a plan! Parkey and his wife, Lisa, live in Cumming, Georgia and are newly empty nesters. They three have three children – Kayla (and husband Micah), Morgan (and husband Ryan) and Micah.