A record share of Americans — more than 20% — agreed to pay more than $1,000 per month for a new car loan at the end of the year, according to car sales site Edmunds.
$1,000 car loan payments are on the rise, stressing household budgets
Submitted 5 weeks ago by return2ozma@lemmy.world to aboringdystopia@lemmy.world
https://www.cnn.com/2026/01/27/business/1k-car-loan-payments-budgeting
Comments
return2ozma@lemmy.world 5 weeks ago
Bluegrass_Addict@lemmy.ca 5 weeks ago
fuk… that’s absurd. I felt bad agreeing to 300/month. I’d laugh at the dealer, call em drunk and never return if they tried that shit
roofuskit@lemmy.world 5 weeks ago
Yeah, my car payment is $250 and I hate paying that much.
Lemmyoutofhere@lemmy.ca 5 weeks ago
I feel sorry for people that have car payments. If you can’t pay cash, you can’t afford it.
jj4211@lemmy.world 5 weeks ago
Do they mean 20% of all Americans, car purchasers, or new car purchasers?
Today@lemmy.world 5 weeks ago
That’s outrageous!!
booly@sh.itjust.works 5 weeks ago
I wonder how those specific buyers’ household incomes are. Part of the “k shaped recovery” from COVID is that some people genuinely are richer than ever.
If 10% of US households make more than $250k/year, and richer households are more likely to buy new cars (and buy them more frequently), it might very well be that the $1000/month payments are being paid by those who can easily afford them, while the $300/month payments are the ones actually causing financial strain on average households.
SaveTheTuaHawk@lemmy.ca 5 weeks ago
The same people are living paycheck to paycheck.
inclementimmigrant@lemmy.world 5 weeks ago
Ravi Stephens II paid $80,000 in 2022 for a Ram 2500 pickup, which he planned to use in a business he was starting.
The $1,019-a-month, seven-year loan he took out was more than double his previous car loan for a 2013 Camero. It didn’t cause him too much trouble at first.
Melissa Dickerson never imagined she would end up with a $1,100 monthly car payment, especially for a used car. Then her son wrecked her Acura.
This isn’t a article about 1K+ car loans, it’s about American Idiots and American males with SDE.
They only have one god damn line that actually addresses the issue:
, as well as the cutting of production on cheaper models.
And if the article isn’t bad enough, it’s locked behind a “agree” button unless you use a vpn and if it’s this bad now, can’t wait to see how CNN will be after MAGA gets a hold of it.
nomecks@lemmy.wtf 5 weeks ago
People don’t think about the cost to drive either. A 2500 gets like 17L per 100km. That’s like $25 or more for every 100km you drive. Tires are 400 bucks a pop. Parts are all heavy duty and expensive. The monthly payment is only the first kick in the nuts
Lemmyoutofhere@lemmy.ca 5 weeks ago
If you’re not paying cash for your car, you can’t afford it.
SaveTheTuaHawk@lemmy.ca 5 weeks ago
Exactly. People need to grow up and get away of the Boomer mentality of society judging them on how much car they rent.
lightnsfw@reddthat.com 5 weeks ago
I will simply continue to maintain my old ass civic until it rusts to bits. Something will probably kill me by then anyway.
Dyskolos@lemmy.zip 5 weeks ago
Why do people always have to live above their means and then complain? If You can’t pay cash for your car, it’s outside of your budget.
I see so many people here driving cars that are Wwwwaaay above what they could actually afford. One tiny miscalculation and shit hits the money-fan.
I would never feel relaxed driving a car that is beyond the amount of spendable cash I have. Unless its company leasing. Those are so cheap it hurts 😁
Enekk@lemmy.world 5 weeks ago
I’m not saying that there weren’t many bad decisions made, but this is also misdirecting where blame is owed. Cars have gotten more expensive and if you are a family, there really aren’t any low-cost family hauler options. Yes, people make bad choices, but they are often lead on by sales people and, in the US, they likely have to have a car.
See the latest Climate Town
Dyskolos@lemmy.zip 5 weeks ago
Without a car sucks too here (Germany). We may have a better public transport but it still sucks bigtime the last time I had to use it. And I will not try it again unless forced to 😁
Also yes, cars got way more expensive and also the dumb cars will soon die out.
But honestly, “being lead by sales people” isn’t really a great excuse to sign your financial ruin. Could be avoided by first assessing what you actually CAN pay in the WORST CASE without being totally fucked, then find the right thing online and avoid salespeople. And I’m not great with money or a very responsible adult. Yet I would never go to a car shop and “browse” there. My desires might overshadow my abilities and salespeople can sniff that 😁
captainlezbian@lemmy.world 5 weeks ago
On one hand I agree with a lot of the replies about how all cars have gotten massively expensive, but also I do generally agree with you. Like, yeah, it’s absolutely awful that Americans can’t buy a reasonably affordable station wagon with decent mileage to haul around their 5 kids these days, and the light truck loophole needs to be closed.
But also, I swear to fuck, the number of people I know that are lower/middle class schmucks who scoff at the idea of driving something that’s small, boring, and efficient is part of the problem. It’s a weird situation where it’s getting harder and harder to live within one’s means, but also so many people seem adamant not to.
Yeah my reasonable vehicle isn’t able to do everything I might want to, it wasn’t new, it’s not the fanciest car, and it isn’t engaging in the arms race that our roads have turned into. But I paid cash, I get good mileage, and it’s good enough. I’m what would be considered lower middle class to the boomers. I don’t make enough money to get the nicest, fanciest car or to drive a giant expensive suv and also have good finances.
I will say though that many Americans simply cannot pay cash or go without a car. When for most of the country busses in a major city come once an hour (and if you live in the affordable suburbs, it’s a single commuter bus) it’s often either vehicle ownership or unemployment. And cities with good public transit are generally pretty expensive. But you need to actually develop the financial literacy to understand what kind of loan you can take on and what kind of car you can have. You need to stop thinking of a car loan as a fixed cost that once it’s paid off it’s time to buy another car, and instead once it’s paid off it’s time to start putting that money aside for your next car so you take less of a hit. Americans don’t save even when we can, we take more debt than is reasonable and buy above what we can afford. Until that pattern stops we’re going to continue moving towards longer loans with more expensive payments.
Dyskolos@lemmy.zip 5 weeks ago
I guess this pattern is not really just american but maybe universal in capitalism. Here it is the same. We learn from the beginning that your worth is simply measured by your wealth. Especially if you’re a dude. But besides that being totally disgusting bullshit, i, personally, always thought higher of people that drove a shitty piece of old crap but still had some cash left at the end of the month, than of those that drove the newest hot shit but had like -1% net-worth each month just for blingbling.
Sure, i have it easier than most and never had to worry about loans or cash or whatever, but i still live way beneath of what i could. My house is tiny, my car not overly fancy my wardrobe is very compact etc. And i always observed the same: someone earns 1k more a months and his lifestyle goes up 1k. Earns 20k more a month and lifestyle goes up 20k. And on the whole way they complain that no cent is left at the end of the month, yet fail to see the problem.
UnpledgedCatnapTipper@piefed.blahaj.zone 5 weeks ago
I don’t necessarily agree that you need to be able to pay cash for a car, but within reason. If you can’t pay way more than the minimum payment, you can’t afford it. Also, insurance exists for a reason!
I’ve got a small loan (~$14.8k originally) and I’m paying it off ASAP. After my 5 payments so far, it’s down to $11k. I’m paying over double what the monthly payment is set at, with all the excess going to the principle. I expect to have it paid off in ~18 months from now, if not sooner.
Dyskolos@lemmy.zip 5 weeks ago
Sure, 18 months is kinda overseeable. But still very risky. One unexpected financial mishap and you’re rolling into the neverending pitfall of debt. I have not the slightest clue about average car prices in the US, so i can’t really put that $15k into perspective.
Insurance (i assume you meant coverage of potential unability to pay back?) is nice, but also rises the cost noticably :)
Of course, not judging you or anything. In my world, everyone would have car of their choice (within some reason) for free, given by the government (that kinda forces you to work and commute to where you do that).
ArgumentativeMonotheist@lemmy.world 5 weeks ago
“Can’t post my shitbox on the 'gram, I don’t wanna lose aura.” 🤷😔
Dyskolos@lemmy.zip 5 weeks ago
Like that. If that is ones motivation for a car The couldn’t afford, well…it will sooner or later bite their asses
rafoix@lemmy.zip 5 weeks ago
Name a better combination than insecure Americans and ridiculous overpriced low quality cars.
muntedcrocodile@hilariouschaos.com 5 weeks ago
Why in the fuck would u pay that and not just buy a shitbox for like 2k
mojofrododojo@lemmy.world 5 weeks ago
I’m driving a car from 2005 (original owner!) but off the top of my head: bad credit, or needing a vehicle that can handle a long drive commute reliably.
muntedcrocodile@hilariouschaos.com 5 weeks ago
If u can pay that much to rent u can afford to buy some shitbox outright no credit required. Most of the shitboxed I’ve driven or my mates have driven are reliable as shit just ugly with no ac, and a broken stereo.
WoodScientist@lemmy.world 5 weeks ago
Franky, I have no interest in a $2k vehicle as it’s difficult to know what you’re buying, and it’s going to be a money pit if you’re not able to do your own maintenance. I prefer to buy cheap sedans new and drive them into the dirt. That way you know they’ve been maintained properly and you know you’re not buying a lemon. Plus your time has value, and always being stuck on the side of the road with a broken down car isn’t fun.
D@piefed.social 5 weeks ago
There are those that pay interest and those that get paid interest, the decision is yours.
baines@piefed.social 5 weeks ago
0 percent interest auto loans are a thing
SaveTheTuaHawk@lemmy.ca 5 weeks ago
You seriously believe a car dealer is losing money?
A car loan is principal and interest. You got a 0% “deal”, you overpaid on the principal.
floquant@lemmy.dbzer0.com 5 weeks ago
No they aren’t, maybe technically but no one is lending money for free, aside from Klarna whose business model is preying on those that can’t pay back
WoodScientist@lemmy.world 5 weeks ago
Every dollar of interest subsidies manufacturers give is a dollar they cut from discounts and other incentives.
fantasyocean@lemmy.dbzer0.com 5 weeks ago
And the price will always go up until there is an alternative to curb demand. There won’t be an alternative until people in this country start to demand regional rail in their states, stop acting like public transit is something that can only exist in a major city, and actually invest in the public transit in their cities. “BuT I LiKe DrIviNg!” then drive to your girl’s house or the grocery store. But you should have the OPTION to use the bus or light rail or whatever to get to work/school.
fishy@lemmy.today 5 weeks ago
Here in America we have big cars and tiny rail networks. We should have tiny cars and big rail networks.
My fellow Americans, being pedal to the floor in a lightweight five speed shitbox is infinitely more fun than restraining yourself constantly in a giant top heavy rollover machine. You feel like you’re doing 120mph but you’re going 120kph, it’s glorious. Taking the train is fucking great! I get to play video games and not stress about traffic, if I go to a happy hour and drink too much I’ve already got a DD!
bridgeenjoyer@sh.itjust.works 5 weeks ago
Americans are all brainwashed to think they NEED a 8 seater 35 ft long suburban, that they drive alone 99% of the time.
My miata works 95% of the time for me. And I have a longbox pickup (no ac, all manual, no radio, single cab) for actual work (8ft boards and drywall etc)
The issue is peoples’ f 150 boy howdy y’all quaeda edition is their status symbol for dick dize.
JeeBaiChow@lemmy.world 5 weeks ago
But why? Isnt the sub-25k car still a thing?
hemko@lemmy.dbzer0.com 5 weeks ago
Just searching online “cheapest cars USA”, there’s still several options for under 25k
BigDaddySlim@lemmy.world 5 weeks ago
Marketing and vehicle regulations have made it more profitable for car manufacturers in North America to sell trucks and large SUVs as “family cars”, so over the last 30+ years the industry has been pushing them hard. Trucks and SUVs are classified as light trucks, which have different fuel economy requirements which are more laxed than those for passenger cars. Small cars are being marketed out.
So of course if boils down to corporate greed chasing more money as well as garbage regulations. That’s why the Ford f150 is almost always the best selling vehicle in the US.
Not Just Bikes has a few videos on the topic.
captainlezbian@lemmy.world 5 weeks ago
No, it’s actually hard to find subcompacts these days. Which sucks as someone who prefers them for reasons beyond price. I like having a tiny, super maneuverable vehicle. I can u turn easily, parallel park without problems, and even see children and wheelchair users crossing the street in front of me
SaveTheTuaHawk@lemmy.ca 5 weeks ago
No small cars, no small asses.
LordCrom@lemmy.world 5 weeks ago
Not new.
roserose56@lemmy.zip 5 weeks ago
You might leave USA and migrate in UK!
privatepirate@lemmy.zip 5 weeks ago
Because things are going so well there right now…
Lawnman23@lemmy.world 5 weeks ago
The lady bought a $51k Acura and the dude bought a $80k Ram.
These aren’t exactly “just trying to get buy” vehicles. These are financially stupid people not wanting to work within their financial means for a vehicle. They wanted a too expensive for them “looks good so people don’t think I’m poor” vehicle and now are getting bit in the ass by it.
The article is making it out to be they are just trying to get by in life. Uh no.
roofuskit@lemmy.world 5 weeks ago
In fairness 51k ain’t even luxury prices anymore. Low end cars start at 30k now.
jacksilver@lemmy.world 5 weeks ago
It was $51k for a used car.
If it was new I could understand, but that much for a used car is crazy. I’m guessing she had to buy when used car prices were almost the same as new, but I feel like that’s still a lot.
hemko@lemmy.dbzer0.com 5 weeks ago
I’m not sure how it goes with tariffs, conversation rates and whatnot but in last I checked the low end cars in Europe started from way under 20k, Kia picanto for example is 18k
And that’s brand spanking new cars, that are always a bad deal. Few years older and you can drop half the price for basically still a new car
SaveTheTuaHawk@lemmy.ca 5 weeks ago
And they burn $3-5K less gas, and cost less to insure. This is the 5 year math everyone should do but nah, people buy cars on childish impulses.
WoodScientist@lemmy.world 5 weeks ago
We bought a new 2025 Corolla for $24k.
mracton@piefed.social 5 weeks ago
Yeah….the customers are the problem…not the tariffs, not the auto industries, not the financial industries, not the marketing practices of these companies.
Even people who’ve been doing relatively well have had their costs jacked up even more as we move from income taxes to tariffs. Wages in the bottom have remained stagnant. First time home ownership’s average age is 40. They’ve/We’ve all drank the materialist capitalist kool-aid and it’s hard to take back what control we do have.
Pyr_Pressure@lemmy.ca 5 weeks ago
I bought a rebuild Subaru for $15k and have gotten almost 150k miles out of it in the past 5 years.
There’s no way I would buy a new vehicle unless I was significantly stable in my finances and made way more money.
I don’t understand why people who can barely afford them buy new vehicles when there are much cheaper used options.
SaveTheTuaHawk@lemmy.ca 5 weeks ago
The gas bill on that RAM is at least $400/mo.
Poor people don’t know how to be poor. They think they can afford whatever banks will loan them.
captainlezbian@lemmy.world 5 weeks ago
That truck cost more than my bachelor’s degree and car combined… And Acura is just luxury Honda. Japanese automakers like to have luxury brands separate from the main one. Buying an Acura (Honda), Lexus (Toyota), or Infiniti (Nissan) should be assumed out of the question unless you can afford a BMW, Cadillac, or any other classic luxury car. And honestly pickups that you don’t need for work should be seen the same way, but moreso.
jj4211@lemmy.world 5 weeks ago
Less that Japanese like to have luxury brands, more that the market here seems to demand it.
Cadillac is fancy Chevy. Audi is fancy VW, Genesis is fancy Hyundai, etc.
At least at one point I think Lexus wasn’t a thing in Japan, they just were Toyota models.
Pickup trucks seem to buck the trend, your fancy ass 100k truck needs to still be a “good ol F150”.
WoodScientist@lemmy.world 5 weeks ago
Seriously. Last September we had to replace our old 2007 Corolla that got totaled after someone drove out in front of us. We were the only owners of the 2007 Corolla. We owned it from new to dust. We shipped around a bunch, considering various new and used options. We eneded up buying…a brand new 2025 Corolla.
The cost of this vehicle? About $24k. We ran the numbers on it, and that’s actually less, adjusted for inflation, than we paid for the 2007 one.
Affordable cars still exist. You just have to be content with owning less car.
FatVegan@leminal.space 5 weeks ago
But how else will strangers know that they are not poor?
Washedupcynic@lemmy.ca 4 weeks ago
In 2020 I bought a brand new bike, spent $1400 on it and had it for 23 years until it was stolen. At the time, when I bought it, I was making 26K a year. I paid cash; that was what was within my means to own something without having to pay extra for it through a loan. In 2023 I bought a new (electric) bike, paid $1000 cash, no loan. I make 55K now. That’s what was within my means to own something outright, without having to pay a middle man for the privilege of borrowing money. No car loan hanging over my head, no worries about gas prices, or paying insurance and registration for the privilege to drive. You are 100% right about people living above their means. If the weather is really bad, I take public transit. The most I spend on transit is $65 a month during 1 month in the winter. Other months is usually $13-26 when I am mostly riding the bike everywhere. Me being a cheap bastard about transit affords me the ability to live 3 miles from my job, (higher rent,) and affords me the opportunity to travel and take a small vacation on yearly basis.
xxam925@lemmy.zip 5 weeks ago
Except how you look is almost everything in our society.