More than half of Americans (56%) now say their monthly lease and car payments are enough of a burden to prevent them from making other big ticket purchases, according to a survey.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The Cambridge Consumer Credit Index found that 17% of those surveyed making car loan payments said these loans are a major burden, up from 11% who felt so in 2003. 39% now say the loans are a minor burden, down from 44% a year ago.
One reason that the level of burden has increased on many consumers is that average car payments have risen because of higher car prices. 17% of those with car payments are spending between $US500 and $700 a month, up from 10% who paid that amount in 2003. 43% (down from 50% a year ago) are paying between $300 and $500 a month, while 32% (unchanged from a year ago) are paying less than $300 a month.
The level of pent-up demand for new vehicle purchases in the next six months remains similar to a year ago, with 8% of Americans very likely to buy a car (up from 6% in 2003) and 8% somewhat likely to purchase a new vehicle (down from 11% a year ago).
“The results of the [survey’s] wildcard question show that car loans and leases are becoming a greater burden on Americans’ budgets, since the price of cars has been rising, resulting in larger monthly car payments for many,” said Consumer Credit Index spokesperson/financial analyst Jordan Goodman.
“These larger payments are becoming an increasing burden on consumers, restraining them from purchasing other large ticket items that they would like to buy.”
