Drivers Overspend on Car Loans in at Least 10 States

Drivers overspend on car loans in at least 10 states

Jens_Lambert_Photography via iStockCar buyers across the U.S. are taking on more auto debt than they can realistically afford. Between rising car prices and longer loan terms, drivers in some states are now putting nearly half of their income toward vehicle payments…and the pressure is hitting household budgets hard. A new analysis of car loans shows that in at least 10 states, buyers are spending over 38% of their median income just on vehicle…

States Where People Overspend the Most on Car Loans

Americans hold over $1.6 trillion in car loan debt – more than $13,600 per household, and that amount keeps growing. At the same time, interest rates have trended upward sharply in recent years and have only slightly declined from their peak, and car prices have experienced significant inflation as well. High prices and high interest rates have unfortunately driven some people to borrow more than they can reasonably afford for the necessity of a…