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Yes, common. Additionally, most americans cannot afford a car payment under 10% of their take home monthly income. But most people do not actually follow this a
by agloe_dreams 3y ago
Yes, common. Additionally, most americans cannot afford a car payment under 10% of their take home monthly income. But most people do not actually follow this advice, which makes the situation worse.
The fact of the matter is that the take home pay for someone making $40K is ~2,300. 10% is $230/mo, which you cant even get a lease for anymore...But people need cars, so they are overleveraged.
- nickthegreek 3y agoThis is why 84-month auto loans are now a thing that more and more people are signing up for. Which wasn't too much of a concern with low interest rates... but now?
- sofixa 3y ago> But people need cars, so they are overleveraged. Which is a massive issue in itself too. In many parts of the US and Canada a car is necessary for daily life, so everyone is forced to spend non-insignificant amounts of money on one or multiple cars, which is very wasteful.