average new vehicle price and monthly payment reach record high: $37,260 & $545, record #s behind

[Demovictory9]

Auto loan delinquencies rise as the cost of monthly payments hit record high
The percentage of auto loans delinquent for more than 60 days rose in the fourth quarter.
Overall, less than 1 percent of all auto loans are more than two months behind, well below the historical average.
Still, economists say the uptick adds to concerns that Americans may be showing signs of struggling financially.

https://www.cnbc.com/2019/02/27/auto-loan-delinquencies-rise-as-cost-of-monthly-payments-hit-record.html


Zabritski says the stats are worth watching, but not yet to the point of serious concern. "It's only natural to see an uptick in automotive delinquent loan volume. It's important to view these trends within the larger industry context," she said.

Americans are borrowing more money than ever to buy new vehicles, $1.17 billion in the fourth quarter, according to Experian. That's not surprising given that consumers are buying more pickups and SUVs, which carry a higher sticker price than sedans.

The automotive website Edmunds says the average transaction price for a new vehicle, what consumers actually paid dealers, in December hit an all-time high of $37,260, an increase of $6,598 from December 2010. As a result of the higher prices, the average new vehicle auto loan in the fourth quarter climbed more than $600 to $31,722, according to Experian.

Not only are consumers borrowing more to pay for a new vehicle, they are also making higher monthly loan payments. Experian says the average monthly payment for a new vehicle hit a record high of $545, up $30 from a year earlier. That increase is driving up interest in used vehicles, which sell at a far lower price and typically carry a lower monthly payment.

http://fortune.com/2019/02/12/americans-late-on-car-payments/

A Record 7 Million Americans Are 90 Days Behind on Their Auto Loan Payments

[PeeJ52]

1. I haven't been able to bring myself to buy a new car since 1995.

And the used cars I buy are getting older and older. One good thing, at least they are getting better and lasting up to 200,000 miles now.

[OnDoutside]

21. I'm staggered by the sums people give away by just driving a new car off the forecourt. I am able to

get a new Ford Focus every year because Ford have a discount scheme for families of current and former Ford workers, so a new car only costs me about 3K every year. Once my aunt passes (hopefully not for a long time !), that will have been my last new car.

[GeorgeGist]

2. In my area it's the $40000 pickup that every red-blooded Murican must have.

[WhiteTara]

3. Tesla's $35,000 car is starting to get into

a price range that makes sense to go electric. If the gas guzzlers are $37,000, it's almost a no brainer. Of course, that's if you want to spend that much money for a car.

[TexasBushwhacker]

4. I can buy an old condo for $37K in Houston

That's just nuts. I'm still driving my 2006 Scion xB. It just now has 100K miles on it.

[WhiteTara]

5. It is nuts

I drive a 1993 Isuzu Trooper and Mr WT drives a 2004 Solara. But someday we're going to have to change cars and I just can't bear the idea of another combustion engine.

[TexasBushwhacker]

17. I'll go with a hybrid next time around

I'm considering buying something a bit nicer a driving for Uber and Lyft. If I can make just enough to cover my car payment and insurance, it will be like having a free car.

[aikoaiko]

6. I loved my 1st generation Xb. Sadly it was sandwiched between two cars.

[TexasBushwhacker]

16. Yeah, I didn't like the 2nd generation

It had more power but worse gas mileage.

I hope YOU survived the car wreck okay!

[roamer65]

7. Everything is about 10 times the price of 1965.

A decent car cost about $2000-$3000 back then and gas was about 25 cents a gallon.

A new Ford Mustang V-8 stickered around $2700 in 1965. A similar car would be around $30000 now.

[ProfessorGAC]

15. The V8 Is Considerably More

MSRP is around 42k for the GT.
Slightly lesser models are high 30s.
But, the 2.3 liter EcoBoost versions can be bought for 26 or 27k.

[oasis]

8. Public transportation anyone?

[madville]

9. People choose to spend that much on vehicles

with all the bells and whistles. A new Corolla or Accord or any basic regular car is still $15,000 to $20,000 brand new. Easily can keep payments under $300 a month if one had to finance it.

[Johnny2X2X]

10. Never buy new

I just can’t justify a new car. I have always bought used and always will. My wife and I have no kids and are in the upper 10% income wise so technically we can afford new cars, but it’s also a stupid expense when you can get the same car at half the price a few years old.

It’s time for a new car for the wife. We’re looking at 2015 and 2016s. But only if we can get close to 0% interest.

The sub prime auto loan industry is predatory, and that’s what causes the defaults.

[crazycatlady]

14. It depends on the car too

I've noticed that with some cars, a 2-3 year old car is only nominally cheaper than a new one.

I bought my late grandfather's car. I'm now the 3rd generation in the family to drive it. Fittingly, the car is a (Subaru) Legacy. I will be driving it into the ground and buying my next car with cash. I put aside mileage reimbursements and travel stipends in a separate savings account named 'car." Also a small portion of my Etsy sales go into that account.

[Vinca]

11. I'm keeping the old Rav until she falls apart. My husband really needs a new truck, but not only

do they cost more than our first house, they're the size of the Queen Mary. He'd buy a new one in a nanosecond if he could find a bona fide small truck with a single cab.

[Luz]

12. We have a 2001 ford ranger with 260k miles. He will never

sell it. We're gonna drive it to its grave. If some company would produce a nice, small work truck at a reasonable price, they'd sell millions.

[Vinca]

13. I call the truck that we want a "terrorist truck" because you see footage of ISIS driving

around in little Toyota Hilux pickups. Apparently there is something called the "chicken tax" that was enacted years ago that prevents auto manufacturers from bringing small pickups into the country. The truck he has now is from 2007 and that one was bigger than he wanted, but eventually they just fall apart. I'm always looking for an old truck in new condition, but they don't appear because everyone wants one.

[pecosbob]

18. I sold my truck a couple of months ago

got a new job...now I walk to work. Got tired of turning that hamster wheel.

[Coventina]

19. Wha? I bought a new car for the first and last time a few years ago

A 2016 Mazda 3. I got it nicely optioned (not a stripper) for $24,000

I am very satisfied with the car and the price I paid. However, I will never go through that experience again.
Such a stupid run around for what should be a simple transaction. It took ALL DAY! Actually, a day and a half, because the financing part wasn't completed on the first day.

I will never do that again. It's the private party, used option for me if I ever have to replace my Mazda.

But anyway, going back to the price, I can't believe prices have gone up that much in just 2 &1/2 years!!

[Codeine]

22. We just bought a 2015 Mazda 3 for my wife

to drive; it’s a really nice little car. I don’t like the seating position (I dislike sitting that low) but it does look good. I got her hand-me-down Scion xD which happily has much higher seating, though it’s coupled with absolutely boat-like handling. It’s a subcompact with the turning radius of a Peterbilt.

[Coventina]

23. They are nice little cars.

After my Subaru Forester, it did take some adjustment in the ride height.

The Mazda has an EXCELLENT turning radius! Something that I'm forever grateful for when navigating gas stations.
(Which I do much less frequently due to the Mazda 3's excellent gas mileage).

[AwakeAtLast]

20. Guess I will keep my 19 year old car.

It's older than my daughter! A 2000 Toyota Avalon, 189K miles.

[Auggie]

27. I have a 2000 VW with 210,000+ miles on it

Cheaper (so far) to repair it than buy something new

[Cold War Spook]

24. We bought a 2009 Kia Optima for $20,000.

That included a full warranty for as long as we owned the car. We had 0% down and 0% interest for 60 months. We bought a 2015 Kia Optima for $22,000 0% down and 0% interest for 60 months which included a full warranty for as long as we own the car and covered a 2nd owner if we sold it. Of course I drive the 09 with 134,000 miles on it.

[Codeine]

25. The Kia warranty plan is insane.

I’m looking at maybe getting a Soul or a Sportage later this year based almost entirely on their warranty system.

[PoindexterOglethorpe]

26. I am gobsmacked by those numbers.

I cannot begin to imagine paying that much or having that high a car payment. Full disclosure: I have always paid cash for my cars.

And that average car payment is not that much more than my house payment, and I live in Santa Fe which is supposed to be too expensive for mere mortals to afford.

Is it mean of me to suggest that maybe a lot of those buyers are anticipating having to live in that vehicle some day soon?

[Ohiogal]

28. I have not bought a new car since 1986.

We buy them a couple years old and drive them till they fall apart.

Right now I have a 2006 Corolla and it’s been extremely dependable.

Brand new is a waste of money, waste of time (they keep you there for hours) and I just can’t stand car salespeople or the whole process. It’s insane. I love compact cars. Seems like everyone has to have a vehicle the size of the Queen Mary nowadays.

[Adrahil]

29. I buy my cars new....

...and then drive them a long time. I just replaced my 2005 Accord last year, and my other car is a 2010 Honda Odyssey.. it’s got another 5 years in it.