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$1,000 car loan payments are on the rise, stressing household budgets

At the end of the year, Edmunds reported a record share of Americans—more than 20%—agreed to pay more than $1,000 per month for a new car loan.
Record-High car prices and high interest rates are producing huge monthly payments as the Federal Reserve lowered its benchmark interest rate by nearly two percentage points since late 2024.
Melissa Dickerson, a paralegal from Orting, Washington, is paying $1,100 monthly for a used Acura after previously paying $400 and has paid off about half of the $51,000 loan.
Borrowers are falling behind as car loans 60 days delinquent hit 1.45% in Q3, and high monthly payments stress household budgets, with National Debt Relief advising staying current.
Experts say there's little chance payments will fall any time soon as average payments are nearly 40% higher than three years ago and average used car loan is $538.

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$1,000 Car Loan Payments Are on the Rise, Putting a Strain on Family Budgets.

By Chris Isidore. Melissa Dickerson never imagined she'd end up with a $1,100 monthly car payment, especially for a used one. Then her son wrecked her Acura. Thankfully, he was fine. But when she went shopping for a replacement SUV, Dickerson, a paralegal in Orting, Washington, soon discovered it would cost her much more than the $400 a month she'd been paying. “It was a total shock,” said Dickerson, who also had to extend the loan to 72 months,…

3 days ago·Idaho Falls, United States

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