Aside from a house, a car is probably going to be the most expensive thing most of us ever buy. According to Experian’s 2017 “State of the Automotive Finance Market” report, the average auto loan amount is now $30,621.
Sound like a lot? That’s because it is – and our cars probably cost more than that. The $30,621 figure is the auto loan amount. Imagine how much it might be without trade-in allowances and/or down payments.
Oh, and we’re borrowing for a lot longer. Almost one-third of borrowers (32.1 percent) are choosing terms of 73 to 84 months.
These are the kinds of numbers that make me want to lie down with a cold cloth over my eyes. I learned them while researching “How to finally pay off your car this year,” an article for Magnify Money.
Fortunately, I also know of some consumers who didn’t opt for seven-year loans. Instead, they paid off their vehicles in six to 18 months. They weren’t well-heeled – just determined.