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I found this interesting. Louisiana ranks #1 highest car payment for both new & used cars in the country. Nevada was #2 (new) and Georgia #3 (new) for highest car payments. I wonder what this means - is it more likely that people in Louisiana are rolling in more negative equity? Putting less down? Or truly buying the most expensive new cars? Full article: https://www.cnbc.com/2019/12/09/map-...ery-state.html
As to why they rank so high, one (possible) explanation is that Louisiana and other Gulf states, in their coastal areas, have gotten a enormous amount of damage from hurricanes and extreme flooding events in the last several years. That obviously means a lot of flooded, damaged, and totaled vehicles. Many of those vehicles had to be replaced, often by people who had little resources or credit. It also means that they wee often replacing old vehicles that were not worth much even if totaled...that, of course adds to the cost of having them replaced, if insurance or FEMA doesn't cover it.
As for Nevada, I don't know.....your guess is as good as mine , unless there are a lot of well-heeled people living around Las Vegas who are buying expensive vehicles.
What's scarier is the average new car price is $36k (according to Edmunds) meaning a lot of the new loans could be a 6 or *shudder* 7 year loan term to get payments in the $500s.
Compound that but the fact that auto delinquencies (loans that are 90 days or longer past due) are at its highest levels, as per the New York Fed, this is screaming for a market correction at some point in time.
But back to point, I think it is a combination of negative equity with many new models coming out combined with higher transaction prices. Really interesting stats!
As to why they rank so high, one (possible) explanation is that Louisiana and other Gulf states, in their coastal areas, have gotten a enormous amount of damage from hurricanes and extreme flooding events in the last several years. That obviously means a lot of flooded, damaged, and totaled vehicles. Many of those vehicles had to be replaced, often by people who had little resources or credit. It also means that they wee often replacing old vehicles that were not worth much even if totaled...that, of course adds to the cost of having them replaced, if insurance or FEMA doesn't cover it.
As for Nevada, I don't know.....your guess is as good as mine , unless there are a lot of well-heeled people living around Las Vegas who are buying expensive vehicles.
I see a TON of nice cars in Vegas. Whether or not the drivers can actually afford them is anybody's guess, but they are out there. I see BMW's, Benzes, Tesla's, etc everywhere.
if one state is more 48 months and another 72, but payments are the same, obviously the latter has financed a ton more money and is likely hugely upside down.
Interesting map. I suspect many factors, some of which may include:
In a state with a lower cost of living (housing), people may have more money to spend each month on a car.
In a state with higher sales tax, monthly payments may be more. Sales tax on my GS was over $6k.
States with large rural populations may see fewer dealers and less competition between them to lower prices, driving up payments.
if one state is more 48 months and another 72, but payments are the same, obviously the latter has financed a ton more money and is likely hugely upside down.
100% agreed. At first i was surprised to see how similar pricing was across the country, but yes, when you think about all the variables, you absolutely must include length of loan. Would love to see average interest rate on these loans as well, and average negative equity rolled in.
Still very interesting to see what most people in the country are comfortable spending each month on a car. Very similar across the board, regardless of cost of living situations.
Interesting map. I suspect many factors, some of which may include:
In a state with a lower cost of living (housing), people may have more money to spend each month on a car.
In a state with higher sales tax, monthly payments may be more. Sales tax on my GS was over $6k.
States with large rural populations may see fewer dealers and less competition between them to lower prices, driving up payments.
Places like California has really high wage enabling them to buy higher end cars (although cost of living is also higher).
I found this interesting. Louisiana ranks #1 highest car payment for both new & used cars in the country. Nevada was #2 (new) and Georgia #3 (new) for highest car payments. I wonder what this means - is it more likely that people in Louisiana are rolling in more negative equity? Putting less down? Or truly buying the most expensive new cars? Full article: https://www.cnbc.com/2019/12/09/map-...ery-state.html
What I find interesting is that in the southern United States, wages are lower but car prices seem higher.
Places like California has really high wage enabling them to buy higher end cars (although cost of living is also higher).
Here in the Bay Area, the average home price is a million dollars and most peoples rents are in the $3000-$6000 a month range. The wages still don't match the cost of living here. If you have a wife and 2 kids, you need to make close to 300,000 a year to feel middle class.
Here in the Bay Area, the average home price is a million dollars and most peoples rents are in the $3000-$6000 a month range. The wages still don't match the cost of living here. If you have a wife and 2 kids, you need to make close to 300,000 a year to feel middle class.
I agree...the Bay Area is simply the craziest in the US though. So-cal is better with the home prices for sure and the wage isn't that much lower. Most of my friends in the Bay Area grew up there so they were able to buy their home when it was much more affordable. Compared to what they get paid, their housing is now minuscule. Allows them to buy nice cars
As for Nevada, I don't know.....your guess is as good as mine , unless there are a lot of well-heeled people living around Las Vegas who are buying expensive vehicles.
There are. Vegas has exploded over the last 20 years, and there are definitely dealers for high end cars that weren't there decades ago.
I agree...the Bay Area is simply the craziest in the US though. So-cal is better with the home prices for sure and the wage isn't that much lower. Most of my friends in the Bay Area grew up there so they were able to buy their home when it was much more affordable. Compared to what they get paid, their housing is now minuscule. Allows them to buy nice cars
Yeah unless you got in early here you're assed out. Even back in the early 90s prices were extremely high in comparison to the rest of the country but nothing like now. We paid $320,000 for our house in the 90s which was considered very high then. Now it's worth well over a million, no way we could buy anything here today. Having kids and bills, even on our salary we still feel like we are struggling. Taxes, Day Care etc is out of control.
Map shows average car payment for each state
, unless there are a lot of well-heeled people living around Las Vegas who are buying expensive vehicles. 
