Car Loan Payments

I’m Miriam Neff, and I’m Valerie Neff Hogan, with Wise Women Managing Money.

M Current data says more than a million US consumers have fallen at least two months behind on car loan repayments.  This is the highest delinquency rates since 2009!

V Let’s look at the numbers.  About 4.3 million Americans took out a car lease or loan last year.  The average borrower has about $18,400 in auto debt.  A popular trend has been longer payments at lower amounts.  Which means you’ll likely be ‘underwater’ at some point.  Still owing when the cars value is less than what you owe.

M Our recommendation.  Drive the vehicle you have as long as possible.  Save and shop carefully.  If you must borrow, make it for a brief time