(WCMH) – With new and used car prices near record highs, car buying can really be a case of sticker shock.

With the average new car price up to $46,000 in 2022, and used cars up 30% in the past year, many buyers are finding themselves priced out of the market.

The average monthly payment is up to $644 a month, according to Bankrate.com. As a result, dealers are pushing longer and longer loans: six or seven years, up from five years a few years ago.

They usually sell it as an 84 month loan, because it is not as scary as saying seven years. But Nerdwallet.com suggests you “say no to 72 and 84 month loans.”

The site says a seven- or eight-year loan can leave you underwater almost immediately, owing more money on your car than it’s worth.

The bigger problem with long loans: that car will need a new $800 set of tires, and probably other expensive repairs, when you are still paying for it each month.

Nerdwallet says instead of longer loans, you may want to consider buying a less luxurious cheaper new car. Or try leasing, where you pay a much lower monthly rate

So, think hard about still paying for that new car when it’s an old car, so you don’t waste your money.
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