Car Payments Average $800 Per Month: Report

[Indeed]

 

[BmoreGorilla]

Isnt the HELOC interest variable and not fixed?

It is. He thinks interest rates aren’t going up any time soon


And he might be right. I guess he looked at it like he could be just get the HELOC at a lower rate than the car and have more time to pay it off giving him more flexibility

Smart short term but helocs at best used to reinvest. I’m getting one for remodel my home to increase its value then get re-appraised

He just went against his home’s equity for a depreciating asset

No interest financing was good, but I would never use my home equity to pay for a depreciating asset personally

I didn’t say it was smart


I think he was just looking at the monthly payments and went for it. He got approved for more than the car he wanted so he immediately paid the rest back when he got the car. Of course he coulda just a used car and not worried about all that



Idk too much about HELOCs tho since I never tapped into my equity

 

[315]

Never had a car payment. Been buying cheap used cars since I've been driving

 

[BmoreGorilla]

that's not how helocs work.

he paying interest

He said payments were interest free for the draw period which is 10 years. Than 10 more years after that the interest is included

 

[Problematic Pat]

Car payments $800. Electric bill in areas near data centers $400 for a 800 sqft apartment almost $1,000 for a 2,000 sqft home.
Groceries $200 plus a week for 2 people.
If you move you need to make $70,000 to rent anywhere decent.
Average home price is almost half a million and majority of Americans can't afford that especially with a lot of people being single.

 

[KillerPups]

He said payments were interest free for the draw period which is 10 years. Than 10 more years after that the interest is included

helocs are variable rate loans based on primerate. i don't think ya boy understands what's happening. i would recommend he pay off that car in 5 years. not 10 or he paying way more than a traditional 5 year fixed rate loan.

 

[winb83]

I got 5 years (4 left) 5.9% rate and a $153 payment on a $33K car.

At this point in my life If I'm unwilling to put down about 70% of the total cost of the car as a down payment I'm not financing it. Also not financing anything over $10K.

 

[CrimsonTider]

Never had a car payment. Been buying cheap used cars since I've been driving

When is the last time you bought a car?

 

[NZA]

that's why i see so many people rolling around with the car looking like they live in it. shyt packed up to the ceiling

 

[charknicks]

There is no HELOCs that are interest free. In fact, you are paying compound interest daily on that.

 

[Mike Ock]

My first car was a hoopty (Mitsubishi Lancer), I bought off of craigslist for $3500...Had that car for about 8 years. Second car I got financed for a 4 year payment plan(Nissan Sentra), after seeing how compound interest work, I paid it off in 3 years. 2 years after paying it off it got flooded and the adjuster was hella generous, got back about 85% (after having it 5 years) of what I paid for it, from insurance. Took that money with some other cash I had and just paid cash for a honda crv ex-l...Before my sentra flooded I was hoping to pass it down to my kid and get an electric car, but life happens.

 

[CHICAGO]

THE FACT THATS THE AVERAGE IS CRAZY.
THATS MEANS THERES TONS OF
PPL OUT HERE WITH $2000 CAR NOTES



​

 

[Wild self]

My first car was a hoopty (Mitsubishi Lancer), I bought off of craigslist for $3500...Had that car for about 8 years. Second car I got financed for a 4 year payment plan(Nissan Sentra), after seeing how compound interest work, I paid it off in 3 years. 2 years after paying it off it got flooded and the adjuster was hella generous, got back about 85% (after having it 5 years) of what I paid for it, from insurance. Took that money with some other cash I had and just paid cash for a honda crv ex-l...Before my sentra flooded I was hoping to pass it down to my kid and get an electric car, but life happens.

Back in the early 00s when people my age were getting driver license at 16, broke down but durable whips were as cheap as $800 . Honda and Toyotas back then were affordable.

 

[Dreamchaser]

I got 5 years (4 left) 5.9% rate and a $153 payment on a $33K car.

At this point in my life If I'm unwilling to put down about 70% of the total cost of the car as a down payment I'm not financing it. Also not financing anything over $10K.

How?

I got a 5 year (3 left) 0.99% loan for 37k. I pay $640 monthly. How much did you put down? I put down $0.

 

[Stuntone]

I pay 950$, but my home is paid off. And I love cars.