The bubble may be stretched to the breaking point.
According to the latest Experian data, monthly payments for new- and used-vehicle loans hit record highs during the second quarter.
Average new-vehicle payments increased 4.0 percent (about $20) year-over-year to $525, while used-vehicle payments rose 3.6 percent (about $13) from the year earlier, to $378, Experian said in its State of the Automotive Finance Market report.
To put that $525 figure in perspective, that sum had the same buying power as $4,240 back in 1965 – when the average new cars cost about $2,650 . . . for the whole car. And that $2,650 in 1965 money is equivalent to just over $21k today.
But today, the average new car sells for about $35k – which is why monthly payments are at record highs.
To understand why they will go still higher – and why that is inevitably going to lead to most people renting ride-shares rather than owning and driving their own cars, see here.
. . .
Got a question about cars – or anything else? Click on the “ask Eric” link and send ’em in!
If you like what you’ve found here, please consider supporting EPautos.
PS: EPautos magnets are free to those who send in $20 or more. My latest eBook is also available for your favorite price – free! Click here. If you find it useful, consider contributing a couple of bucks!