Your Money Minute Trouble Making New Car Payments 5/1/25
May 1, 2025
Record highs in new car payments are shaking up the financial landscape, with average loans soaring to $41,572 and monthly bills averaging $742. As payments rise, many families face tough decisions, prioritizing their current vehicles amid financial strain. Delinquencies are on the rise, reflecting a growing challenge for consumers. Discover the impacts of these soaring costs and the changing dynamics of car ownership in today's economy.
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Soaring New Car Payments
- The average new car loan amount reached $41,572 with a monthly payment averaging $742.
- Nearly 20% of new car buyers face payments of $1,000 or more monthly, revealing high financial pressure.
Maintain Instead of Buying New
- Consider maintaining your current vehicle instead of buying a new one during high payment and tariff periods.
- Focus on affordability and managing existing assets before taking on new car loans.
Rising Car Payment Delinquencies
- Delinquencies on car payments are increasing at the fastest rate since 1990.
- Economic pressures and tariffs on vehicles and parts contribute to people struggling to keep up payments.