Car Payments Now Average More Than $750 a Month. Enter the 100-Month Car Loan.
NegativeFinancial Markets

- The average monthly car payment in the U.S. has exceeded $750, a significant increase attributed to a 33% rise in new car prices since 2020. This trend has led consumers to extend their loan terms to nearly 100 months, reflecting a shift in financing behavior as buyers seek to manage higher costs.
- This development indicates a growing financial strain on consumers, as longer loan terms can lead to increased interest payments over time, potentially exacerbating debt levels and impacting overall consumer spending.
- The situation highlights a broader decline in consumer confidence, with households expressing a more negative outlook on the economy as they continue to spend despite rising costs. Additionally, companies like CarMax are responding to these market conditions by cutting prices to attract buyers, indicating a competitive landscape amid changing consumer preferences.
— via World Pulse Now AI Editorial System