About 1 in 5 new auto loans have monthly payments of at least $1,000

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https://www.msn.com/en-us/money/news/why-it-s-becoming-so-expensive-to-buy-a-car-in-america/ar-AA1Wzz5t


The Washington Post
Why it’s becoming so expensive to buy a car in America
Story by Todd Frankel • 3h

It can be a shock shopping for a new car these days.

The average sticker price for a new car or truck now sits above $50,000 — about 30 percent more than in 2019. Even with incentives and specials, the out-the-door price reached above $50,000 for the first time in September and stood at $49,191 in January — a record for the typically sluggish sales month, according to Cox Automotive.

That’s helped push the average monthly payment to buy a new vehicle to an all-time high of a little over $800, according to J.D. Power.

Some customers go further. About 1 in 5 new auto loans have monthly payments of at least $1,000, S&P Global said, projecting that share could double by year’s end.


“We are approaching a threshold that a lot people don’t want to go over,” said Patrick Manzi, chief economist at the National Automobile Dealers Association.

The auto industry is increasingly worried how much more consumers can take. Signs of stress are growing. Severely delinquent auto loan rates have soared to levels last seen during the pandemic shutdown.