The Expert Podcast

So what is happening with the vehicle market? Prices on new and used cars are going through the roof. In fact, the difference in new car prices now just 5 years ago is like night and day. And what is that doing for car payments and negative equity on people's vehicles?

Well, first realize that the average age of cars on the road has gone up. It's almost 15 years old or just a few years ago it was about 11 years old. And there is a very big shift to more expensive vehicles. Vehicles now are averaging $49,000 for a new vehicle. And part of it is leading to people keeping cars longer.

If you have a car that's perfectly good, in good shape, even if it's 10 years old, you're probably going to keep it rather than buying a $50,000 car. A standard car payment on a $50,000 car is $1,000 a month. That's just a five-year loan. Sometimes people will go longer to try to cut the payment, but it's not going to make it that much cheaper. And $1,000 for a car payment is a very significant amount of money.

You will be back in your video in just a few seconds. In the meantime, remember that actualhum.com offers you live one-on-one private video consultation with an expert in this exact subject. We want to listen to your story. We want to hear your questions. We want to give you expert advisement of your options and tell you what we know about your particular situation. Now, back to your video.

So, either you're going to pay cash or put a huge amount of down payment to knock your payment down. Either way, it's more likely you're going to try to keep your older car, not paying $1,000 a month. Because here's the thing. Even if you have an old car, even if it's starting to need some repairs, it needs brakes. It needs shocks, needs tires, you're not going to spend $1,000 a month on repairs, and your car is not depreciating. Your car is already at the level of value it's going to be.

If you buy a new car for 50,000, in two years, it'll be worth 30,000. So, you have lost $20,000 of your own cash by buying a new car. More and more people are keeping their cars longer or just buying an old car, a beater, especially for a second car. If you have a newer car that's more reliable for your primary vehicle, and if you have one or two other cars for your family that are older, even if one of them breaks down, at least you have another car you can shuttle around with.

So, $1,000 a month is really the breaking point for a lot of people. Although, there are millions of people, we see it all the time, that have $1,000 car payments, maybe have negative equity. And if you do have a negative equity you're having trouble getting out of, you can click the link below to see if there's options for you.

Thank you for watching. Remember, you can access live one-on-one personal consultations with a licensed private investigator, a licensed commercial insurance broker, licensed certified real estate title examiner, also a certified civil court mediator. So, if you have a need to talk to an expert in any of these fields or even a licensed building general contractor, you can click the link below, actualhuman.com, and arrange a live one-on-one undivided attention with a licensed expert where you can ask any questions, get information about your situation, and we'd be glad to help.