Average cost of a new car: $32,160
Average new car loan: $27,430
Average used car loan: $17,974
Average new car payment: $471
Average used car payment: $352
20% of new car loans are six-year loans.
Source: CNBC and Experian Automotive
The average household income in the US is $54,000. Don’t waste your money on a rapidly depreciating asset. Take care of your car and drive it a long time. Dave Ramsey says the cheapest car to own is the one you already have 99% of the time. Even if you hit a $1000 repair, that’s cheaper than a new car. It’s only two payments.
Debt is choking America. It robs us of our ability to give generously to causes we really care about. Ramsey says all your vehicles (including the boat) should not amount to more than half your household income. Smart guy.
It’s just a matter of good stewardship.