Average New Vehicle Auto Payment Hits Record High $523 Per Month

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Authored by Mick Shedlock via MishTalk,

The average size of a loan for a new car in the U.S. set a record in the first quarter as did the average payment.

Auto Math

$523 * 12 * 6 = $37,656

That total does not factor in the down payment.

Interest = $37,656 – $31,455 = $6,201.

That’s $1033.50 in interest annually.

Lovely.

Anyone trading the car in after three or four years will be hugely underwater.

The dream of owning a new vehicle is becoming more elusive,” said Melinda Zabritski, senior director of automotive financial solutions at Experian.

Elusive Dream?

Ah, the dream of spending $30,000 to $50,000 on a depreciating asset.

Elusive has not yet arrived, but it will.

Mike “Mish” Shedlock

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