How to Avoid Paying $1,000 Per Month on Your Car Loan

South Floridians have a special place in our hearts for expensive cars, but that does not mean that we want the expensive car loans associated with them.  Looking for your car in the parking lot of Sawgrass Mills would be a bummer if you didn’t pass by a few rare beauties somewhere between the Blue Dolphin entrance and your old clunker.  These days, cars have gotten so expensive that they do not have to be showstoppers to require a car loan payment of $1,000 per month or more; they don’t even have to be new.  The idea of adding an extra $1,000 to your monthly expenses is enough to fill most people with panic, but if your car is nearing the end of its lifespan, you should act strategically to get the most affordable car and the most affordable auto loan possible.  To find the most feasible way to get a car without making your financial situation even worse, contact a Miami debt lawyer.

Why Are Car Loan Payments So Expensive?

The current economic situation is a perfect storm for unaffordable car loan payments.  First, the price of everything has increased since the beginning of the pandemic, and the price of cars has remained high.  The shortage of cars during the pandemic caused prices to skyrocket, so people who bought new cars in 2021 often paid more than the sticker price, and it remains a seller’s market for new cars.  Meanwhile, because new cars are so expensive, people have been reluctant to trade in their old cars.  Therefore, used cars are also expensive, due to scarcity.

Alternatives to Sky-High Monthly Car Payments

The number of drivers paying $1,000 or more per month on a car loan payment is the highest it has ever been.  In Florida, three percent of consumers who owe money on car loans have a monthly payment of at least $1,000 on a single vehicle.  Meanwhile, not everyone pays that much; nationwide, the average monthly car loan payment is $416.

What can you do to avoid a sky-high monthly auto loan payment if your car kicks the bucket?  Not getting another car probably isn’t an option unless you have boundless free time and no fear of heat stroke or lightning strikes, or else an army of friends and cousins available to drive you everywhere you want to go.  “Just get a cheaper car” is easier said than done; you can only choose among cars that are available.  You could choose a loan with a longer repayment term and a lower monthly payment.  The better your credit score and the more money you put toward a down payment, the lower your monthly payment will be.  If you have a family member with a good credit score, and your family member is willing to co-sign with you, your monthly payment will be lower.

Work With a Debt Lawyer About Auto Loan Debt

A South Florida debt lawyer can help you if you are struggling with an unaffordable auto loan.  Contact Nowack & Olson, PLLC in Miami, Florida to discuss your case.

Source:

experian.com/blogs/ask-experian/research/1000-auto-loan-payment-is-becoming-more-common/