A car loan is a second-largest liability and it plays runner up to your mortgage. As the pandemic is still going on many auto lenders are seeing car loans or vehicle debt ballooning.
What is the average car payment?
An average car payment was $250 to $500 a month now on new cars or used cars the auto loans are much higher. My car payment when I had an auto loan was just under $200 which would be a pipe dream for most now.
Right now the average new car is $53,000 in some parts of Canada and used cars can be seen at about $40,000 that’s a huge price hike. Auto financing is for longer periods of time now and monthly payments are going up and up.
People are just buying cars and not looking at the down payment options or going for the no money down car payments and getting stuck after the fact with $600 to $800 car payments a month, which is insane.
Save up for a car
Right now if you want to purchase a vehicle it’s not so much the type of vehicle you want it’s what you can ideally save up for a down payment and afford monthly. It’s best to just save up for the car you want and continue to test drive.
You may want to seek out the private seller car market there might be a motivated seller that can negotiate with you better than a car dealership can there are multiple reasons to check out the private seller market for used cars.
Right now you want to avoid buying new cars at all costs we don’t know when the market will stop increasing but shopping around for used car deals will be the best chance to land a car.
Look at the cost of a car for the long run
You should really ideally look at what a vehicle would cost you in the long run and see if you have a vehicle currently that you can repair it might be a bit cheaper for you to do just that instead of going out and getting auto financing that’s sky-high.
If your also looking at financing a car you need to look at three to five years instead of seven-year auto loan terms. One thing we can also suggest that people are now looking at is ride-sharing for a bit to save on gas, insurance, and auto repairs.
Some areas you might want to look for a used car on the east coast are no money down car lots in Chattanooga Tennessee, New York City, no money down car lots in Mobile Alabama, or no money down car lots in Washington DC, and no money down cars in Harrisburg PA.