The cost of buying a car continues to rise, forcing many drivers to make tough financial decisions.<\/p>\n
According to automotive research company Kelley Blue Book, the average cost of a new car is $50,080, with tariffs playing a role in higher prices. The typical new car payment tops out at $758 a month, according to data analytics company J.D. Power.<\/p>\n
To keep monthly payments manageable, dealers said more buyers are stretching auto loans to six years or longer.<\/p>\n
“Typically five years ago, the average loan was about 60 months,” Dawn Matthews, operations director for David Dodge Chrysler Jeep RAM in Glen Mills, said. “Now we’re seeing 72 months is the norm.”<\/p>\n
Consumer experts warn that longer loans can come at a cost. Spreading payments over more time can mean paying thousands of dollars more in interest.<\/p>\n
“When you’re taking on a six, seven, eight year loan, you run the risk of owing more than the car is worth at the end of the day,” CBS Philadelphia consumer reporter Josh Sidorowicz said.<\/p>\n
As a result, some drivers are leasing instead. Thomas MacDonald from Springfield, a married father of four who works at a hospital, drove off with a 2025 Jeep Grand Cherokee on Friday. He said he signed a 42-month lease.<\/p>\n
“I think I’m going to enjoy it for the length of my lease and then I’m going to reevaluate where the car market’s at as the lease end is approaching,” MacDonald said. “And hopefully the cost of cars has come down, along with the interest rate. Ideally, I’d like to purchase a vehicle, rather than leasing it.”<\/p>\n
Matthews said her dealership is trying to help buyers offset higher prices by offering incentives such as rebates and lower interest rates on select vehicles. She added that there is a wide range of options for different budgets.<\/p>\n
“We have something for everybody,” Matthews said. “We have cars that cost a little bit less, in the $35,000 to $40,000 range, as well as those luxury cars that customers are looking for.”<\/p>\n
Joshua Sidorowicz<\/p>\n
contributed to this report.\n <\/p>\n
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