By dennismary.slave@gmail.com 
Car payments have skyrocketed in recent years – a result of high interest rates and high prices. Pandemic era shortages are partly to blame. But larger structural factors are, too. For years customers have been clamoring for fancier cars, and automakers have raked in the profits. In the short term, rising incentives and falling prices may provide some relief. But insiders wonder what the car market will look like over the next decade.
Chapters:
00:00 – 01:14 Title card – Why car payments are so high right now
01:23 Chapter 1 – Rising car payments
02:04 Chapter 2 – Why so high?
05:35 Chapter 3 – Good news
Producer: Robert Ferris
Editor: Darren Geeter
Animation: Jason Reginato
Senior Managing Producer: Tala Hadavi
Additional footage: Getty Images, Hyundai, Toyota, GM, Ford
» Subscribe to CNBC:
» Subscribe to CNBC TV:
About CNBC: From ‘Wall Street’ to ‘Main Street’ to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.
Want to be a successful, confident communicator? Take CNBC’s new online course Become an Effective Communicator: Master Public Speaking. We’ll teach you how to speak clearly and confidently, calm your nerves, what to say and not say, and body language techniques to make a great first impression. Sign up today and use code EARLYBIRD for an introductory discount of 30% off through July 10, 2024:
Connect with CNBC News Online
Get the latest news:
Follow CNBC on LinkedIn:
Follow CNBC News on Instagram:
Follow CNBC News on Facebook:
Follow CNBC on Threads:
Follow CNBC News on X:
Follow CNBC on WhatsApp:
#CNBC
Why Car Payments Are So High Right Now
source
It started with covid-19 cause there where no new car made and to this day they are trying to makeup there lose plus the markup price didn't help if a car has that and made built from the factory dealership shouldn't unless u order in for it
A 50k vehicle is so far above my mortgage price it’s embarrassing. Almost 800 credit score. But if I want a new car I essentially have to buy it cash. And who the heck can do that? That’s disgusting
People will have to buy cheaper cars and put more money down! Simple! Older cars will become more popular for rebuilding!
Car prices are high because people keep going into more and more debt thinking theyll pay it off later and car companies push that idea while raising car prices to make more.
Because financially illiterate cretins agreed to them without thinking.
All those children… left behind…
No one trusts CNBC's analysis. The high prices are due to the fallout with China. All western companies lost tens of billions investing there and now have nothing to show for it. Also the climate reduction act force manufactures to swap to EVs – And later discovered EVs are fire hazards and have low resale values.
I have zero debt 😂, if you pay that much for a car, YOU ARE STUPID! You're the reason they are that expensive. Why would they lower prices if people are still buying at that price?
PURE GREED – Blaming the pandemic in 2025 is just pathetic – PURE GREED
If EVERY person in this country would STOP buying any vehicle for just 3 months and EVERY vehicle would sit on the lot unsold car prices would drop quickly and become affordable again. we actually have the power to control car prices.
This vid is now 7 months old and the situation continues to deteriorate. Long ago I stopped financing any vehicle and I keep my vehicles a long time. I also only purchase used vehicles. Car manufacturers are disconnected from what consumers can pay for but unless consumers revolt by avoiding new car purchases, there won't be a reversal in car prices.
“Caused by pandemic era shortages” from 4 years ago?
Problem: I want a brand new luxurious SUV worth $60K. Result: $1000 car payments into 72 months (thank you interest). Solution: Get a new Corolla/Civic style car for less than half the price. Result: Small car payments and more money to spend on other stuff. "But a small car is less fun, what are the neighbors going to think?". SIgh…..(Note: The interior space of a new Civic is more than that of a 2000 Accord, which was back then one of the best selling sedans)
Car payments keep you broke.
I have a 2013 civic that’s been paid off for years. I think I’ll just pay to have a remote start installed rather then even step foot in a car lot
Hey the blacks love rolling in shiny foreigns, they can’t afford the. But they make the banks rich!
I’m riding my paid off 2013 Toyota RAV until the wheels fall off! I was able to save $10,000 in two years with the car payments that I did not have to pay anymore!
Do yourself a favor. Buy a good, used car.
Whatever the equivalent of a SIMP is to women, but to cars
its legit 600-700 a month if you wanna drive anything nice
Lol I wouldn't say that a drop from 793 to 760 is considered a drop.
I had to pay 20k for a 2017 honda accord exl. It's insane
Isnt an asset that deprecates a liability?
Simple math no one seems to understand take $30,000 and divide by 60 months comes out to $500 per month add taxes fees and interest and it’s over $600 and car companies have gotten STUPID with $87,000 pickup trucks so even it you extend for 84 months still over $1,000 .
Before this video played
They showed a car commercial. Too funny
Me. No car. No car payment.
I ride a bicycle.
So blessed.
I'm driving a 2009 kia rio. I'm going to keep driving that beast until it explodes on the highway. Over 200k miles and I'm hoping it will last until 2030.
I don't understand this fasciation with $1k payments like they're something new. It's not. Had you bought a $50k car 30 years ago your payment would've been $1k back then too. Math hasn't changed, only the taste of buyers has as they want more luxury cars and SUVs. If you buy a 2025 Honda Civic, your payment would only be around $400.
Prices are at an all time high, quality of all brands is poor. Government mandates for environmental reasons, are destroying the car industry. Manufacturers must make cars lighter to achieve government mileage requirements. The result is too much unreliable technology and cheap thin plastic.
You guys can have that. I pay cash for every car and never buy new. It's just not worth it.
Paid 2k for my Chinese scooter.. 150cc .. cash
. Been flyin ever sinceeee at 5 buck a full tank
The prices are still too high. A lot of dealers just refuse to lower their prices, but they also have a lot of inventory that's taking up space. They'll figure it out at some point.
I don't GET it. Do you need a NEWER car?🚗 And wonder why you're EATING ramen noodles.
That’s weird? Because I’m only playing $300 a moth for 2 cars right now.
My car payment is $0. I own a 2023 Tesla. Save money. Never use a credit card.
I bought my first car—a 1979 Camaro—in 1990 for $500 and had it for a year. Now you are lucky to get a car for $500/month. I currently drive a 2014 Ford Focus with 192,000 miles and have no intentions on replacing it until it does not run.
Car prices, even used ones, are out of hand!
Lol thats not a house payment. That USED to be a house payment. Now you have to pay $2-4000 for how much houses are today
Im very fortunate that i grew up and living in a pedestrian and public transit friendly city. Never had a car, but i do buy myself a nice pair of ON Cloud walking shoes every 2 – 3 years. No car payments, no insurance payments, and no shoe payments. Amazing!!
Older cars tend to be easier for DIY repairs. Alot of companies are attempting to be the only source of repairs for their products. This drastically reduces the overall lifespan of vehicles not necessarily because the cars themselves are bad but the policys are bad. All i can say is if you own a car from the previous century hold on to it. They dont make em like theu use to.
I am so happy I paid my car in full on day one! No car payments 2008 Honda Civic only have 141k
Car prices have not only sky-rocketed but your new car spies on you and your personal data is sold creating a billion dollar industry. Luckily I drive a 2000 Ford f150 whose engine I just restored for 2k and it will never spy on me😊
Ive been without a car for 3 years now. At first thought I wouldn't survive without one, now I don't even want a car. Ubering to work and doordashing my food actually turned out to be cheaper than my car payment car insurance gas and maintenance 🤷🏽♂️
Me personally, all I want for a new car is just a back up camera and a bluetooth radio.
All these extra technologies is more wear and tear on the batteries, and batteries don't seem to last as long anymore.
GREEDY GOUGING COMPANIES
5 letters is why. G R E E D. The democrats economy always leads to high rent, food, gas, and cars. Great news is Trump Won so let's look forward to a better economy as we had in 2017 2018 2019
My car payment is $289(60 months) but due that I'm a new "driver" according to America(which is fair, it's their rule) I'm paying for car insurance $430 (AHHHHHH AAAAAAAAH).
Anyway. This really sucks.
Just paid off my car in 4 years. Not planning on getting a car anytime soon so likely will not get another unless I can pay for it out right.
Ally bank is one of the worst scammer please don't gowith them they scam said something else and did something else they increased honda civic 2023 per month to 990, straight from 600 whenee called them they said according to contract they can change because its floating which was not informed after complaining they said we have to prove that conversation now who is recording while talking to themwhen we sign contract thats insane we paid one year 7000+ 8000 down and still 5 years payment left and principal amount is still there 35,000 so imagine 35k car cost you near 70k .
Was going for a 2020 Corolla 43k miles but payments with 5k down would have paid 554 a month for 72 months 😬 that’s was no go plus insurance could’ve been 350 on top of that too
my 2010 Mitsubishi lancer has 344k miles on it. I racked up the miles doing uber. Now it’s breaking down n not reliable, I am dreading a car note 😢 😡
Acclimated to $700 and up car payments??? Hell no!!! I bought a 97 4Runner for $2800 and it runs mint and I’ll buy a damn scooter before I buy a new vehicle