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Why Americans are suddenly paying $550 per month for new cars

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Community Leader
Senior Contributor

Re: Why Americans are suddenly paying $550 per month for new cars


@Imhotrodcrazy wrote:

I bought a 1984 chevy k10 1/2 ton new that I am still driving daily 35 years later.  I have 217k miles on it and I still enjoy driving it.  I keep the truck in excellent condition and get compliments on it all the time.  I can't even imagine paying the prices that people are today.  I have a friend who paid $70,000 for a new chevy pu. I wouldn't do it even if I could.  I will be driving my truck till the day I die. 


Or it dies 😁. Thanks for sharing this. I loved it. See, back then, they knew how to make vehicles that would last. 

GOALS: Garden til DEC 2020 and 800 Club

Scores
APR 2019: EX 787, TU 789, EQ 781
JAN 2019: EX 794, TU 783, EQ 801
DEC 2018: EX 777, TU 783, EQ 799

|| AmX Cash Magnate $25K || NFCU CashRewards $20K || Macy's $20K || Discover IT $15.7K || NFCU CLOC $15K || NFCU Platinum $12.5K || AmX ED $11.5K || CitiCostco $7K || CitiDC $6.3K ||
Message 21 of 32
Community Leader
Senior Contributor

Re: Why Americans are suddenly paying $550 per month for new cars

I gave up owning a car in 1999 and haven’t looked back. I’m lucky I live in a metropolitan area where public transportation is A-1, I can walk to work, and since the invention of Uber, I can get anywhere I want without monthly car payments, auto insurance, car inspections, emission inspection, property taxes, and car maintenance. Yep, I don’t miss it at all. 

 

The thing with 72-month, 84-month loans, is the payments more than likely will out live the cheaply made car. So you’re paying for a car that you can’t afford to fix and can’t drive. Yuck!

 

GOALS: Garden til DEC 2020 and 800 Club

Scores
APR 2019: EX 787, TU 789, EQ 781
JAN 2019: EX 794, TU 783, EQ 801
DEC 2018: EX 777, TU 783, EQ 799

|| AmX Cash Magnate $25K || NFCU CashRewards $20K || Macy's $20K || Discover IT $15.7K || NFCU CLOC $15K || NFCU Platinum $12.5K || AmX ED $11.5K || CitiCostco $7K || CitiDC $6.3K ||
Message 22 of 32
Established Contributor

Re: Why Americans are suddenly paying $550 per month for new cars


@CreditInspired wrote:

I gave up owning a car in 1999 and haven’t looked back. I’m lucky I live in a metropolitan area where public transportation is A-1, I can walk to work, and since the invention of Uber, I can get anywhere I want without monthly car payments, auto insurance, car inspections, emission inspection, property taxes, and car maintenance. Yep, I don’t miss it at all. 

 

The thing with 72-month, 84-month loans, is the payments more than likely will out live the cheaply made car. So you’re paying for a car that you can’t afford to fix and can’t drive. Yuck!

 


I envy you.  I hate making those ins. pymts (they're huge), hate keeping up with warranty work and working out all the kinks & flaws, keeping up with which tags I gotta buy this month...pita.  Even parking waaaay out in a parking lot so no one bashes their door or shopping cart into mine is annoying.  I got one beater that has been 100% dependable (wrangler yj) and holds it's value...all else, meh.

Message 23 of 32
Community Leader
Senior Contributor

Re: Why Americans are suddenly paying $550 per month for new cars

I forgot about parking a long distance from store 😂🤣 or parking car at an angle and take up two spaces. Now those are the cars I wanted to deliberately key. 😂🤣. I didn’t, but wanted to.
GOALS: Garden til DEC 2020 and 800 Club

Scores
APR 2019: EX 787, TU 789, EQ 781
JAN 2019: EX 794, TU 783, EQ 801
DEC 2018: EX 777, TU 783, EQ 799

|| AmX Cash Magnate $25K || NFCU CashRewards $20K || Macy's $20K || Discover IT $15.7K || NFCU CLOC $15K || NFCU Platinum $12.5K || AmX ED $11.5K || CitiCostco $7K || CitiDC $6.3K ||
Message 24 of 32
Community Leader
Super Contributor

Re: Why Americans are suddenly paying $550 per month for new cars

Not this kid! lol
I refuse to pay over $225 a month for any vehicle. It's just my imaginary stopping point. Keeps me out of trouble.
I don't do extra warranties either. Waste of money IMHO.

I drive a 2012 KIA optima hybrid to work. And keep the spare in the garage, 2016 Honda Civic EX. Bought both new. Paid the Optima off back in 2013.
It's been a good car with no major issues.
I also live out in the boonies. Lol
And wouldn't have it any other way.
The price of peace and quiet is worth the commute, insurance and payment.

Once I finish paying off the Honda. I won't be buying any new vehicles for a very long time. I plan to drive them both until the wheels fall off.😂
The Honda hasn't seen 1000 miles in the last year. Still smells new inside.
The 3 year warranty will expire before I hit the mileage expiration of 36,000 miles.
Message 25 of 32
New Contributor

Re: Why Americans are suddenly paying $550 per month for new cars

I always buy slightly used. Let the first owner take the hit. Last month, I bought a truck with only 39,000 miles on it for $24,000. It's in flawless condition and still has a warranty on the powertrain to 100,000. I still have the original window sticker from it. That truck was $51,000 new! So the guy who bought it new basically paid $27K (plus gas an oil changes) to drive a truck for 3 years? LOL. I also negotiatied by price and not payment. The dealer did ask "So... what are you lookin' to spend a month?". I literally said "Oh no, I know that game. Let's just talk about the out the door final price and I'll worry about my monthly payment later."

Message 26 of 32
Community Leader
Super Contributor

Re: Why Americans are suddenly paying $550 per month for new cars

Double post
Message 27 of 32
Community Leader
Super Contributor

Re: Why Americans are suddenly paying $550 per month for new cars

@matts175
Exactly on the not shopping by payment!
That's how they get you!
I shop for a payment from my home.
What I mean by this. I figure out where I want to stay within a payment range. Find the vehicle I want within reason. Negotiate the price and pay with cash/ credit card the remaining balance that wasn't pre-financed.
Last three vehicles, not one of them had a payment over $215 a month.
I may have put $10 to $15k down to get it where I wanted it.
Message 28 of 32
Valued Contributor

Re: Why Americans are suddenly paying $550 per month for new cars

Putting on 30k - 35k a year is a lot of time in a vehicle therefore, economy is out of the question.  50k - 60k is the average cost of and it’s a perpetual vehicle payment, new vehicle every five years.  Just part of the cost of doing business.

MR | UR | Sky Miles | AA Miles | Hilton
Message 29 of 32
Highlighted
Valued Contributor

Re: Why Americans are suddenly paying $550 per month for new cars

So many people seriously don't understand what they actually "need" out of a car.

 

Yes you have to have some patience for repairs every now and again with an older car, but it beats having car payments in just about any scenario.

 

I have a 2007 VW GTI bought used and less than a year old. 6 year note paid off in early 2013. I've put $7k in maintenance and repairs into it since then, but over 6 years that comes out to $97/month. Just turned 120,000 and wouldn't flinch at driving it cross country.  

Just got my insurance bill . . . . $275 for 6 months!

 

 

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Message 30 of 32