Core Insights - The average cost of a new car has surpassed $50,000 for the first time, reaching $50,080 in September [4] - Wealthier households are driving the current auto market, while lower- and middle-income households are more cautious due to inflation [5][4] - The average loan term for car purchases has increased to 69 months, with 22% of loans extending to a record-high of 84 months [3] Group 1: Loan Terms and Costs - Longer loan terms, while initially attractive, can lead to significantly higher total interest costs, with an 84-month loan costing $5,326 more in interest compared to a 48-month loan [6] - Monthly payments vary by loan term: a 48-month loan has a payment of $1,078 with total interest of $6,724, a 60-month loan has a payment of $891 with total interest of $8,463, and an 84-month loan has a payment of $679 with total interest of $12,050 [7] - The trend of longer loans is a response to rising car prices, making it difficult for buyers to budget effectively [3] Group 2: Budgeting and Financial Strategies - Buyers are advised to keep car costs within 10% of their take-home pay and consider delaying purchases until financial conditions improve [11] - Strategies to pay off loans faster include making biweekly payments, which can save on interest and reduce the loan term by 13 months [9] - Refinancing options may be available for those with improved credit scores, although upfront fees should be considered [12]