Has Car Ownership Become So Expensive It's Basically A Luxury Now? - Jalopnik

Rising costs are reshaping car ownership into something many people consider a luxury, driven by high prices, insurance, fuel bills, financing, and maintenance. A LendingTree survey found that 39% of respondents say owning a car is a luxury they cannot afford, signaling a widening affordability gap. The analysis also reports an average annual loan payment of $7,275, about $606 per month, and nearly one-fifth of loans exceeding $1,000 monthly. Seven-year loan terms have become common as buyers stretch payments to keep monthly commitments manageable, raising concerns about debt levels. LendingTree’s analyst Matt Schulz cautions that the 20% income-related guideline is routinely exceeded, which is troubling for household finances, especially for younger buyers. The report highlights a broader societal issue: as car ownership becomes more costly, households may prioritize other spending and delay or forgo vehicle purchases. Experts say rising payments could influence demand for new and used cars, with effects on financing, insurance and maintenance markets. Overall, the data suggest a financing-driven affordability crisis that could reshape consumer behavior and the dynamics of the auto industry.