Car buyers face some tough numbers. A record 17.5% of new-car buyers in the third quarter paid more than $1,000 a month for a vehicle, notes automotive data provider Edmunds. Three years ago, less than 7% of new-car buyers spent that much.
The average new-car loan term runs 68.3 months. Three years ago, it was 70 months. Paying back faster means higher monthly payments; the 1.7-month shift adds roughly $20 a month to payments. The 30% payment hike is also twice the 15% rise in wages. Something has to give. Car prices and interest rates may come down. Wages may rise.
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