Car loans are reaching record highs and taking longer than ever to pay off | CNN Business

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Along with soaring car prices, loan rates are the most expensive they’ve been in more than 15 years

You’ve managed to buy the car, but can you afford to keep paying for it? , with the average monthly payment on a new car at an all-time high, new data from auto website Edmunds shows. The result of the one-two punch of higher prices and interest rates is that it’s taking Americans much longer to pay off their car loans — which include crossovers, SUVs and pickup trucks — and more buyers are being pushed out of the car market altogether.

Most $1,000 per month car loans are taken out by people who choose high-interest, longer-term loans. Rising car prices and the growing difficulty to qualify for lower interest rates have forced buyers to stomach a heftier monthly bill over a longer period of time — as long as seven years — for a lower down payment up front. In 2004, only 1% of auto loans lasted six to seven years. Now those long-term loans are 30% of the market. Only 5% of loans are paid off in two-and-a-half to three years.

 

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Well, time to start throwing coins in the wishing well for that luxury car dream. 🤑🤞 -US

found the next bubble

Prices are high only if you're trying to buy the car to impress people instead of buying the car you need

thanks Creepy Joe!

Thank you Joe Biden and Administration!!

The cost of that very key fob is nearly $500.

FJB

Build back better 😂🤣😂

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