By now, it’s no secret that shoppers in the market for a new or used automobile should be prepared to pay higher prices than they would have just a few years ago.
The car industry has been hit hard by the supply chain issues caused by the COVID pandemic, with shortages of all sorts of materials impacting production of new vehicles. That impact on the available inventory of new cars has served to drive up the price of used cars as well.
Since the start of the pandemic, used car prices have risen 42% - the average used car nationwide carries a price tag around $28,000. The result has been larger, longer loans to pay these higher prices, meaning the average consumer is steeped in even more debt than had been the norm.
And when it comes to auto loan debt, Louisiana ranks second in the country.
The average Pelican State resident carries about $6,510 in remaining balance on their car loan, according to a study by Sound Dollar utilizing a report by the Federal Reserve Bank of New York. Only Texans owe more on their cars.
The south has a stranglehold on the top five with Georgia, Arkansas and Florida rounding out that segment of the tally.
With consumers stretching their loans from the once-standard 60 month payoff to 72 and even 84 months, it could be several years before Louisianians get out from under their vehicle-related financial commitments.
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