When average monthly new-car payments surpassed $700 in May and car prices reached record highs, many potential car buyers decided to sit on the sidelines until the market returned to normal.
Six months later, normal looks further away than ever. The Federal Reserve continues to raise the federal funds rate, driving auto loan interest rates to a 20-year high, and the average new-car transaction price remains above $48,000.
According to data company Cox Automotive, the average monthly……..[read more]
What is driving car payments to get so expensive? How can consumers afford a $700 monthly car payment?
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5 thoughts on “The new reality: A $700 monthly car payment | NerdWallet”
Car payments are becoming more expensive bacause of inflation.
Inflation is the main reason that car payments are becoming so high. I think people can afford these payments because when inflation occurs some people also get raises or take out credit or money from savings.
Inflation is the reason why everything’s going up in price including cars $700 a month is crazy idk how people are doing it cause that’s a really high price to pay monthly. But probable like a good credit score could really help them or really good job.
Inflation causes car payments and many other expenses to become so high. I don’t think the everyone can pay these expenses because some people might receive money from taxes or certain money plans, but most people have other financial responsibilities like paying off a loan or a specific debt which can cause high price expenses to be an issue and eventually pile up.
Due to inflation prices on car payments have skyrocketed and are through the roof rn. I don’t believe most Americans can afford a 700 dollar car payment without pulling out loans and getting in debt.