The Rising Cost of Car Ownership in America

Each year, the cost of purchasing a new car continues to increase. With loans becoming longer and monthly payments steadily rising, many Americans find themselves underwater on their car loans. This trend has only been exacerbated by the recent decline in used car prices, leaving individuals with over-leveraged trades receiving less than ever before.

Longer Loans, Higher Payments

According to recent reports, one-fifth of all new car loans are now 84 months or longer. Despite the extended loan terms, the average monthly new car payment has reached $777. This combination of longer loans and higher payments has contributed to a growing number of Americans finding themselves in a precarious financial situation with their vehicles.

The Impact of Falling Used Car Prices

As used car prices continue to fall, individuals who are already struggling with high monthly payments and long loan terms are facing even greater challenges. The decline in used car values means that those looking to trade in their vehicles are receiving less money than expected, further exacerbating the issue of being underwater on their loans.

For more information on this ongoing issue and how it is affecting Americans across the country, click here to read more.