As you will see below, the size of the average new home has just hit a brand new record high and so has the size of the average auto loan. In the endless quest to achieve the American Dream, Americans are racking up bigger debts than ever before. Unfortunately, our paychecks are not keeping up and the middle class in the United States is steadily shrinking. The disparity between the lifestyle that society tells us that we ought to have and the size of our actual financial resources continues to grow. This is leading to a tremendous amount of frustration among those that cant afford to buy expensive cars and large homes. I remember the days when paying for a car over four years seemed like a massive commitment. But now nearly a quarter of all auto loans in the U.S. are extended out for six or seven years, and those loans have gotten larger than ever... In the latest sign Americans are increasingly comfortable taking on more debt, auto buyers borrowed a record amount in the first quarter with the average monthly payment climbing to an all-time high of $474. Not only that, buyers also continued to spread payments out over a longer period of time, with 24.8 percent of auto loans now coming with payment terms between six and seven years according to a new report from Experian Automotive. That’s the highest percentage of 6 and 7-year loans Experian has ever recorded in a quarter. Didnt the last financial crisis teach us about the dangers of being overextended? During the first quarter 0f 2014, the size of the average auto loan soared to an all-time record $27,612. But if you go back just five years ago it was just $24,174.
Posted on: Tue, 03 Jun 2014 09:11:02 +0000
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