How much is too much for a car payment?
Susan Tompor/Detroit Free Press
19 January 2017
- Counselors at GreenPath say aim to spend 15% of income on transportation, including car insurance.
- About 40.7% of new car loans are in the 61 month to 72 month range, Experian says.
- Payments on a $20,000, five-year car loan would be about $371 a month with a 4.3% rate.
As the auto industry comes off back-to-back record sales years, some auto experts are questioning how high sales for new cars and trucks can grow given existing challenges and expected new higher-rate hurdles in 2017.
Consumers are dealing with a world where some costs are going up far faster than many incomes. As interest rates go up, the cost of existing debt on credit cards and other variable rate loans will go up, as well.
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