"Many people who buy cars finance their new vehicles. In fact, Experian reports that the average monthly payment on a used car is $521 while the average monthly payment on a new car is a shocking $745. Borrowers are also financing their cars for a long time, with Experian indicating that the average loan term for a new car was 68.63 months and the average loan term for a used vehicle was 67.2 months."
"The original poster (OP) explained that he lives in rural Alberta and will soon be starting college. His mother and others convinced him to finance a 2024 Kia Forte, despite the fact that he wanted to buy something cheaper that he could afford to pay cash for. The car had a price tag of $25,000, but the dealer convinced him to add another $10,000 to cover a "protective coating" on both the interior and exterior of the vehicle."
"With a $10,000 down payment, the OP is now looking at making biweekly payments of $231 for the next five years. Since he recently moved out to live on his own and he's going to school full-time, he is very worried he'll be unable to keep up with the payments. He explained that he "feels stupid," and said that he is just 18 years"
Auto buyers commonly finance vehicles and often accept long loan terms and high monthly payments. Experian data show average monthly payments of $521 for used cars and $745 for new cars, with average loan terms around 67–69 months. An 18-year-old rural student financed a 2024 Kia Forte after relatives encouraged him, adding a $10,000 protective-coating package and making a $10,000 down payment. He faces biweekly payments of $231 for five years while starting college and living independently and fears he cannot afford the payments. Selling the car, refinancing the loan, or finding work to cover payments are realistic options.
Read at 24/7 Wall St.
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