How High Can You Go?
Car buyers are already paying an average of nearly $31,400 for a new car or truck, and they may be reaching the end of their proverbial ropes as far as affordability is concerned.
According to data compiled by Experian Automotive in Schaumburg, Illinois, car buyers are going deeper into debt and for longer periods than ever to keep their payments manageable. During the third quarter of 2017, Experian says the average amount financed for a new vehicle was $30,329, which is up $291 from the same period in 2016. On top of that, the average length of a new vehicle loan now stands at all-time high of 69 months. The average loan length is 64 months for used vehicles.
What’s more, used car shoppers are spending more money, too, with the average amount financed escalating to $19,291. Monthly payments continue to rise with new vehicles averaging $502 per month and used vehicles averaging $365 per month – both increases over the same time last year. The average credit score for new-car buyers was 716 while it was dramatically lower for used-car buyers at 659.
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