Consumers Taking On More Car Debt Than Ever - Average Monthly Car Payment Is Closing In On $500

The average amount financed and average monthly payment for new vehicles in the fourth quarter rose to their highest level since Experian Automotive began tracking the data in 2008, the company said today.

To stay within their budgets, consumers are relying on leases and used-vehicle purchases, Experian said.

The average amount financed on a new vehicle was $29,551 in the fourth quarter, a 4 percent, or $1,170, increase year over year. The average monthly payment on a new vehicle was $493, a 2.3 percent, or $11, rise vs. the fourth quarter of 2014, according to part two of Experian’s State of the Automotive Finance Market report. The previous high for new-vehicle monthly payment was in the first quarter of 2015 at $488.

TheSteve - 3/3/2016 12:48:37 PM

+1 Boost

And then there are those who finance luxury vehicles, where monthly payments could approach the cost of a home mortgage.

TomM - 3/3/2016 3:37:10 PM

+2 Boost

Now - compare the average new vehicle monthly payment to the average household income over the years. Or compare the average income to the average cost of the cars - and I believe you will see that cars were more expensive for the average earning family years ago.

MrEE - 3/3/2016 7:02:41 PM

+2 Boost

I would say relative prices clearly have gone up at least going back to the mid 80's. Just consider % of a salary then and % today using the same experience level. Using entry level engineer the cost of a entry level vehicle has increased by 50%. Now you might say vehicles are 50% better at a given level over same 30 years.

So lower fuel prices has led to higher spend on vehicles and to compound the issue is return to lower mpg vehicles. So likely return to higher fuel prices in next few years, will really put the hurt on.

MDarringer - 3/3/2016 8:40:37 PM

-3 Boost

The "I've got a tax-funded program for that" of the Obama regime is eroded real income which makes mortgages and car loans/leases take up a greater % of that diminished income..

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dstampfer - 3/4/2016 11:38:31 AM

+2 Boost

Interesting stuff, but can't say I'm seeing this from my personal example. Last week leased a 2016 MDX-tech pkg. 4th Acura lease - priors were 2009, 2011, and 2013 MDX's. Price for vehicle has increased by roughly $7,000 over the years since my first. Cost to least the first one > 2nd > 3rd. On 4th we made a deal for the exact same monthly payment and no money down... $535.