Buying your first car is already an intimidating experience. In the midst of historic supply shortages, it’s easy to feel overwhelmed.
In March of this year, the average price of a used car was $27,246, according to Cox Automotive—an automotive marketplace and data company—or 28 percent higher than it was a year ago. With those price increases, monthly payments have also swelled. Average payments for used cars reached $488 in the last quarter of 2021, according to Experian. On top of that, the average loan term for used vehicles was just over 67 months, or more than five years.
For many, cars are a necessity. If you have little or no credit, no co-signer or just a limited budget, it can be easy to accept a loan that pushes your budget or binds you to a car for six, even seven years….